Non-Compete Issues
With the changing nature of the work force and increased reliance on technology, well-drafted non-compete and non-solicitation covenants are important to protect a company’s confidential information and customer relationships. We represent clients in both the creation and enforcement of these critical covenants.
Advice and Planning
Working closely with clients, we draft practical solutions to safeguard their customer bases, trade secrets, and confidential information. We regularly draft employment agreements that include covenants not to compete and covenants not to solicit customers and employees, as well as restrictive covenants when assisting in the negotiation of complex executive compensation agreements, equity plans, and retention agreements. When an employee with valuable information departs a company, we quickly evaluate the employer’s rights, formulate a strategy to minimize the risk, and counsel on effectively communicating with the remaining employees. We also offer advice on best practices in hiring employees who may be subject to restrictive covenants. Our significant experience in litigating covenants not to compete strengthens the practical advice and solution strategies we offer clients before crisis strikes, to best protect them from potential fallout.
Litigation of Non-Compete Covenants
Non-compete laws not only vary by state, but their interpretation is also highly dependent on the locality of the jurisdiction and the particular judge or appellate court where the case is filed. Our Texas-based attorneys know the different localities, and given the firm’s rich experience of litigation, are able to strategically advise clients on the subtleties of different venues and judges in Texas. As a full-service firm, our attorneys are also able to call on experienced attorneys in relevant practice areas such as Intellectual Property, eDiscovery, Antitrust, and Corporate. This multi-disciplinary approach provides our clients with a superior advantage over “boutique” firms limited to a single area of focus.
October 6, 2025
Insights
The Non-Compete Conundrum: The Ban, The Backlash, And What’s Next
By G. Scott Fiddler and Michael A. Drab
In April of last year, the FTC voted to implement its final rule prohibiting non-compete agreements in the workplace. The rule, as a practical matter, eliminated the patchwork of non-compete statutes and common law adopted on a state-by-state basis. It also was designed to greatly reduce the use and enforceability of non-compete and non-solicitation agreements, except in the narrowest of circumstances.
August 28, 2024
Insights
FTC Rule Banning Non-Competes Found Unenforceable
By G. Scott Fiddler and Michael A. Drab
On Tuesday, August 20, 2024, employers throughout the country breathed a sigh of relief when a federal trial judge in Dallas struck down the FTC’s rule banning non-competes. It brought to a conclusion a tumultuous and chaotic summer that had turned employers and workers into court-watchers.
July 9, 2024
Insights
Court Issues Injunction Against Enforcement of FTC Non-Compete Rule
By G. Scott Fiddler and Michael Drab
A federal court in the Northern District of Texas has issued an injunction against enforcement of the Federal Trade Commission’s rule banning non-compete agreements, which is scheduled to go into effect on September 4, 2024. The Court has stated it intends to issue a ruling on the merits on August 30, 2024, less than a week before the Rule is scheduled to take effect.
April 25, 2024
Insights
Federal Trade Commission Issues Rule Banning Non-Competes in the Workplace
On April 23, 2024, in a 3 to 2 vote, the Federal Trade Commission (FTC) voted to implement its final rule prohibiting non-compete agreements in the workplace.
By G. Scott Fiddler and Michael Drab
October 4, 2023
Speaking Engagements
Jamila Brinson and Nick Diamond to Speak at the 36th Annual Texas Health Law Conference
Jackson Walker partners Jamila M. Brinson and Nicholas “Nick” Diamond are scheduled to present during the 36th annual Texas Health Law Conference (THLC), presented by the Health Law Section of the State Bar of Texas at the AT&T Hotel and Conference Center in Austin, Texas, on October 9-10, 2023.
February 15, 2023
Insights
Imagine There’s No Non-Competes | Texas Lawyer (Subscription Required)
On Jan. 5, 2023, the Federal Trade Commission proposed a rule that would prohibit non-compete agreements in every workplace in the United States and greatly limit their use in business transactions. The proposed rule has us imagining a Texas without non-competes, asking how we got here, and how the FTC’s proposed rule might affect Texas businesses.
By G. Scott Fiddler and Michael Drab
January 20, 2023
Insights
Federal Trade Commission Announces New Proposed Ban on Non-Competes in the Workplace
By G. Scott Fiddler and Michael Drab
On January 5, 2023, the Federal Trade Commission announced a proposed regulation that would prohibit non-compete agreements in the workplace. The proposed rule follows on the heels of a statement issued by the FTC in November 2022 declaring its intention to exercise authority under Section 5 of the FTC Act and an earlier Executive Order issued by President Biden in July 2021 urging the FTC to promulgate new rules governing non-competes.
July 27, 2021
Insights
New Biden Executive Order Places Increased Focus on Noncompete Agreements and Antitrust Enforcement
By Gary Fowler
On July 9, 2021, as part of an executive order announced to promote competition and increase wages for workers, President Biden directed the Federal Trade Commission to consider two key areas affecting employers: to “ban or limit noncompete agreements” and revise the 2016 Antitrust Guidance for Human Resource Professionals.
April 22, 2021
Speaking Engagements
Jamila Brinson, Gary Fowler, and David Schlottman to Speak During Texas Bar Labor & Employment Law Section’s Summer CLE Series
Jackson Walker partners Jamila Brinson, Gary Fowler, and David Schlottman are participating in the first two sessions of the State Bar of Texas Labor and Employment Law Section’s Summer CLE Series.
- Drafting of non-compete covenants and ancillary provisions regarding confidential information, trade secrets, and use of employer technology
- Advising clients on prudent approaches to hiring employees who may be subject to restrictive covenants
- Defending clients on temporary restraining orders, temporary injunctions, and litigation of covenants not to compete
