On July 3, 2024, Judge Ada Brown of the U.S. District Court for the Northern District of Texas entered a limited, preliminary injunction barring the Federal Trade Commission (“FTC”) from enforcing its controversial Final Rule (“Rule”) which purports to ban almost all non-compete agreements. Importantly, Judge Brown’s preliminary order only enjoined enforcement of the Final Rule against the named plaintiffs who opposed it. On August 20, 2024 – just two weeks before the Rule’s effective date – Judge Brown greatly expanded the scope of her initial ruling by granting summary judgment for the plaintiffs and ordering the Rule be completely “set aside” and “not be enforced or otherwise take effect on September 4, 2024[.]” Judge Brown’s order may be the fatal blow for the Rule, and should end a months-long saga of uncertainty for employers.Continue Reading Final Word on Final Rule? Texas District Court Eviscerates FTC’s Non-Compete Ban
Mikela Sutrina
Mikela Sutrina is a partner in the Labor and Employment Practice Group in the firm's Chicago office.
What the FTC’s Noncompete Ban Means for Healthcare
On April 23, 2024, the Federal Trade Commission (“FTC”) issued its Final Rule banning employers from imposing post-employment noncompete requirements on their workers (the “Final Rule”). The FTC has indicated that it will continue to prioritize enforcement in the healthcare industry, with objectives seeming to include alleviating physician shortages and improving access to healthcare. What the Final Rule means for healthcare organizations generally, and for nonprofits in particular, is not entirely clear and is likely to be challenged. Continue Reading What the FTC’s Noncompete Ban Means for Healthcare
FTC Votes to Ban Noncompete Agreements
On April 23, 2024, the Federal Trade Commission (the “FTC”) voted 3-2 to issue its final rule (“Final Rule”) banning employers from imposing noncompete clauses on their workers, approving the final rule in a special Open Commission Meeting. Continue Reading FTC Votes to Ban Noncompete Agreements
Illinois Supreme Court Rules All BIPA Claims Are Subject to Five-Year Time Limit
In a victory for the plaintiffs’ bar, the Illinois Supreme Court has ruled that all claims under Illinois’s Biometric Information Privacy Act (“BIPA”), 740 ILCS 14/1, et seq., are subject to a five-year statute of limitations. For years, litigants and courts have grappled with whether BIPA claims must be brought within one, two, or five years of an alleged BIPA violation. The Court’s long-awaited decision in Tims v. Black Horse Carriers, Inc., 2023 IL 127801 (Ill. Feb. 2, 2023), puts an end to that pervasive uncertainty. Continue Reading Illinois Supreme Court Rules All BIPA Claims Are Subject to Five-Year Time Limit
New Year Brings New Laws for Illinois Employers
The New Year will usher in several new Illinois employment laws. These laws cover a myriad of topics and will require revisions to employee handbooks and general employment policies. Continue Reading New Year Brings New Laws for Illinois Employers
What Employers Need to Know About New Non-Compete Legislation in Illinois
Following a nationwide trend, Illinois has proposed significant legislation affecting employee restrictive covenants, such as non-compete agreements. While the proposed law does not dramatically change most aspects of the patchwork of Illinois common law, it adds certainty to long-questioned areas and imposes several threshold hurdles and eligibility factors to the test for assessing enforceable restrictive covenants.
Continue Reading What Employers Need to Know About New Non-Compete Legislation in Illinois
Cybercrime 2020 – The Rise of “Vishing”
As if 2020 hasn’t caused enough hardship and headaches for employers already, the FBI and U.S. Cybersecurity Infrastructure Security Agency (“CISA”) recently issued a joint Cybersecurity Advisory Alert warning employers about the rise in voice phishing, or “vishing,” scams targeting remote workers.
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Employers: Do Not Forget Your Sexual Harassment Prevention Training Requirement
As we wrote earlier this year, every employer with employees working in Illinois is required to provide employees with sexual harassment prevention training that complies with the Illinois Human Rights Act (“IHRA”). The Illinois Department of Human Rights (“IDHR”) recently released a model sexual harassment prevention training program that meets the IHRA’s requirements.
Continue Reading Employers: Do Not Forget Your Sexual Harassment Prevention Training Requirement
DOJ and FTC Issue Joint Statement Regarding COVID-19 and Antitrust Violations
The Department of Justice (“DOJ”) and the Federal Trade Commission (“FTC”) recently issued a joint statement (the “COVID-19 Statement”) regarding what constitutes lawful “procompetitive collaborations” between companies to address certain needs for consumers and businesses during the coronavirus pandemic. It also detailed what constitutes unlawful anticompetitive behavior related to essential and frontline workers and other vulnerable employees. The DOJ and FTC used this opportunity to send a clear warning to companies who may seek to take advantage of the current pandemic by entering into agreements to restrain competition and employee mobility or lower wages. Separately, for those companies who are actively working to assist essential workers, businesses and the country as a whole, the COVID-19 Statement provides guidance on engaging in lawful “procompetitive collaboration” to benefit essential workers and the economy amidst the coronavirus pandemic.
Continue Reading DOJ and FTC Issue Joint Statement Regarding COVID-19 and Antitrust Violations
The CARES Act: A Comprehensive Overview for Employers
On March 27, 2020, President Donald Trump signed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) into law. The CARES Act is the most expansive economic stimulus package in American history. The Act follows the passage of the Families First Coronavirus Response Act (“FFCRA”), and acts as its counterpart in many ways.
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Illinois Statewide Stay at Home Order: What Employers Need to Know
On March 20, 2020, Illinois Governor J.B. Pritzker issued a mandatory “Stay-at-Home” Order, located here, directing all Illinois residents to stay home or at their place of residence. The Order takes effect beginning Saturday, March 21, 2020 at 5:00 p.m. CDT and will last through Tuesday, April 7, 2020. Under this Order, all public and private gatherings occurring outside a single household or living unit are prohibited. Following current guidance from the CDC, the Order prohibits any gathering of more than 10 people unless otherwise exempted. Further, all places of public amusement, whether indoors or outdoors, must now be closed to the public during the pendency of the Order.
Continue Reading Illinois Statewide Stay at Home Order: What Employers Need to Know