Tag Archives: Andrew Stauber

Understanding the FTC’s Non-Compete Clause Rule and Its Impact on NDAs

by Joshua H. Lerner, Laura E. Schneider, and Andrew Stauber

photos of the authors

From left to right: Joshua H. Lerner, Laura E. Schneider, and Andrew Stauber (Photos courtesy of WilmerHale)

As we previously reported, the Federal Trade Commission (FTC) announced on April 23, 2024, its Non-Compete Clause Rule (Final Rule), which aims to ban all new post-employment non-competition restrictions and invalidate most existing ones. The Final Rule already has sparked multiple lawsuits seeking to prevent it from taking effect as scheduled on September 4, 2024. The United States District Court for the Northern District of Texas is expected to make a decision in one such lawsuit by July 3, 2024.

As September 4 approaches, many questions remain regarding the potential impact and scope of the Final Rule. This alert focuses on how the Final Rule might affect confidentiality and non-disclosure agreements (NDAs) that employers use to protect their trade secrets and other confidential information.

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California Court Strikes Down Law on Board Diversity

by Tania Faransso, Andrew Stauber, and Courtney A. Murray

 

On Friday, May 13, a California Superior Court judge struck down Senate Bill (“SB”) 826—California’s landmark gender diversity law regarding the representation of women directors on the boards of publicly held corporations based in California.  In passing SB 826 in September 2018, California became the first state in the nation to pass such a bill, followed by several other states proposing and passing various bills to increase board diversity in the years since.  In its May 13th decision, the court found that the State failed to offer a compelling interest for the law, rendering the law unconstitutional under the Equal Protection Clause of the California Constitution.  Crest v. Padilla (Cal. Super. 2022), No. 19STCV27561, at 1.

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