The Bottom Line Privacy and wiretapping laws like California’s Invasion of Privacy Act (CIPA), Massachusetts’s Wiretap Act (MWA), and the federal Wiretap Act (FWA) were originally designed to prevent unwanted eavesdropping on telephone calls. These laws, enacted before websites were Continue Reading
FTC Rule to Ban Non-Competes Draws Swift Challenge
The Bottom Line The U.S. Federal Trade Commission (FTC) issued a final rule purporting to ban employment noncompete agreements nationwide. The FTC Rule passed with a 3-2 vote on April 23, 2024, and is scheduled to become effective 120 days after it is formally published in the Federal Continue Reading
What’s the Harm? Second Circuit Requires Proof of Irreparable Harm to Enjoin Restrictive Covenant Violations
The Bottom Line When companies seek a court injunction for a restrictive covenant violation, they often focus on the covenant’s enforceability. They do this by arguing that the non-compete and customer non-solicitation covenants protect legitimate business interests — and is narrowly tailored Continue Reading
Jury Awards Six-Figure Damages to Hermès in First Major NFT Decision
The Bottom Line Brands should monitor whether and how their trademarks are being used in new technologies and know that such use is still subject to traditional principals of trademark law.Creators should be aware of the limits of First Amendment protection, particularly when dealing with Continue Reading
For Compete’s Sake! Delaware Court Declines to Enforce Sale-of-Business Restrictive Covenants
The Bottom Line Courts around the country subject non-competition agreements and other restrictive covenants to increasingly strict scrutiny in employment contracts.Courts applying Delaware law may also limit enforcement of restrictive covenants executed in the sale-of-business context to the Continue Reading
U.S. Department of Labor Proposes New Rule on Independent Contractor Status
The Bottom Line The U.S. Department of Labor has proposed a new rule addressing the distinction between employees and independent contractors under the Fair Labor Standards Act.If adopted, it will replace the rule announced by the DOL in January 2021 and will be more focused on the “totality of Continue Reading
How to Handle ADA Website Accessibility Claims
The Bottom Line When faced with an ADA website accessibility claim, there are defenses that can be raised, either with the court or as part of settlement negotiations.Companies should carefully review any such claim, particularly the allegations concerning whether the plaintiff visited the Continue Reading
Washington, D.C. Rolls Back Proposed Ban on Non-Compete Agreements
The Bottom Line Washington, D.C.’s amended law banning non-compete agreements contains an exception for highly compensated employees and no longer outright bans anti-moonlighting provisions in all instances. Employers should be mindful of the total annual compensation awarded to employees in Continue Reading
New York City’s “Guaranty Law” Remains Legal — For Now
The Bottom Line The Guaranty Law, enacted on May 26, 2020, provides strong protection to personal guarantors of commercial leases in New York City.While subject to an ongoing legal challenge, the Guaranty Law currently prevents certain commercial landlords from recouping unpaid rental arrears Continue Reading
Colorado Limits Employer Use of Restrictive Covenants
The Bottom Line The Act impacts restrictive covenants entered (or renewed) on or after Aug. 10.The Act significantly alters the landscape for restrictive covenants in Colorado.Employers that have employees who live or work in Colorado should consult with legal counsel and carefully review their Continue Reading