Non-Compete Agreement
In a significant blow to the Federal Trade Commission (FTC), a federal district court in Texas ruled that the agency overstepped its authority in issuing a ban on most non-compete agreements. The court’s decision, issued on August 20, 2024, invalidated the FTC’s Final Rule, which was set to take effect on September 4, 2024. The…
Read More
On Tuesday, the Federal Trade Commission (FTC) voted 3-to-2 on the new rule to ban noncompete agreements for workers across the United States. Noncompete agreements prevent employees from leaving their place of work and going to other jobs within their industry. This new rule is designed to promote industry competition by “protecting the fundamental freedom…
Read More
The North Carolina Court of Appeals decision in Aesthetic Facial & Ocular Plastic Surgery Ctr., P.A. v. Zaldivar highlights the unique impact of public policy considerations when determining the enforceability of a non-compete agreement against a medical doctor. To what extent are such agreements enforceable? At what point does the concern for the health of…
Read More
In early March, retail grocery store company Aldi, Inc. filed a lawsuit in the Eastern District of North Carolina against two former employees who joined rival company Lidl US. The two former employees, Bruna Maraccini and Colleen Savory, are named as Defendants in the complaint. Both were involved in the company’s real estate strategy and…
Read More
It is well-settled law that adequate consideration is required to create binding restrictive covenants such as non-compete agreements. Generally, such agreements are entered at the start of an employment relationship, and the new employment itself constitutes consideration. In North Carolina, continued employment following a merger of two companies does not…
Read More
The Eastern District of North Carolina recently decided a case affirming that, while North Carolina courts have not yet adopted the doctrine of inevitable disclosure, North Carolina would adopt the doctrine under certain circumstances.[1] Spirax Sarco, Inc., (“Spirax”), alleged a claim for, among other things, injunctive relief under the…
Read More
In August, the North Carolina Business Court (“NCBC”) determined a non-compete agreement was unreasonable because of its overly broad geographic restriction, and denied Plaintiff’s motion for preliminary injunction to prohibit a former employee from competing with it.[1] In North Carolina, non-compete agreements are generally…
Read More