On August 20, a federal judge in Texas struck down the Federal Trade Commission’s (FTC) rule that would have banned noncompete agreements nationwide. This ruling has significant implications for both employers and employees across the United States. U.S. District Judge Ada Brown ruled that the FTC does not have the authority to implement a sweeping... View Article
The 2024 Paris Olympics is a remarkable showcase of athletic prowess and international unity. Gold medal athletes have reaped the rewards of their intense training, all within the confines of strict rules set by sports federations and the Olympic Committee. Similarly, for businesses to win against the competition, they must follow strict rules set out... View Article
Navigating the new era of noncompete agreements is crucial for businesses, as regulatory demands for transparency are rapidly increasing. States like California, Washington, and Oregon have significantly restricted noncompetes, and the FTC has approved a nationwide ban, pending legal challenges. Multi-state employers must understand the complex interplay of federal and state laws to remain compliant. With noncompetes becoming less viable, alternative strategies such as non-disclosure agreements, confidentiality provisions, and robust trade secret management are essential to protect business interests. Employers must proactively adapt to these changes to ensure compliance and safeguard their competitive edge.
Now is the time to review your employment documents and identify any provisions that may be classified as noncompete provisions that will contravene the new Washington law and the federal Rule. Assess the potential risks these changes pose to your business and consider alternative risk management tools to safeguard your business interests. Make necessary changes to documents and processes to ensure compliance with Washington’s law. Compile a list of current and former employees impacted by the new federal Rule and be prepared to modify your documents again to comply with the Rule, should it come into effect.
On March 13, 2024, Washington’s noncompete law was amended to further limit the use of noncompete provisions and nonsolicitation provisions against employees and contractors. The changes are a significant shift, and most employment agreements that have restrictive covenants will be in violation of the new requirements. It’s critical to review and update these documents prior... View Article
NOTE: This rule is currently in litigation and has not taken effect. We will continue to monitor and update this post. Employers should be aware of the continuing trends toward employee rights and be prepared for this kind of rule from states and the federal government. The National Labor Relations Board (NLRB) has rolled out... View Article
In staffing and recruitment, legal counsel stands as a cornerstone for success. Staffing companies must adeptly navigate employment complexities, swiftly negotiate contracts for competitive advantage, and prepare for industry consolidation under the guidance of legal experts. Overcoming hesitance to engage legal services, they can transform legal counsel from a last resort into a proactive ally, empowering them to focus on growth and innovation. For staffing firms and entrepreneurs, strategic legal partnership isn't just advantageous—it's indispensable for propelling businesses toward unprecedented success in an ever-evolving landscape.
As you prepare to dive into your goal and budget planning for 2024, remember that legal planning isn't just a sideline item on your to-do list – it's a strategic cornerstone for your business's success. In a world where entrepreneurship moves at lightning speed, failing to plan can indeed be planning to fail. So, as you chart your course for the year ahead, make sure legal planning is firmly integrated into your annual strategy. It's not just about avoiding problems; it's about proactively seizing opportunities, aligning with your goals, ensuring compliance, and securing your business's long-term sustainability. Embrace legal planning as a key ingredient for your business's growth and protection in 2024.
The Corporate Transparency Act (CTA) is a federal law enacted as part of the Anti-Money Laundering Act of 2020 meant to reduce financial crime in small businesses across the United States. Specifically, the CTA requires that smaller, otherwise unregulated, companies file a report with the US Department of Treasury’s Financial Crimes Enforcement Network within their new Beneficial Ownership Secure System (BOSS), which the network may share with other government agencies and financial institutions who request it. The Act will come into effect on January 1st, 2024, for newly formed companies and on January 1st, 2025, for already existing companies.