Carl Hittinger, left, and Michael Neminski, right, with Baker Hostetler. Courtesy photos District Courts Split on FTC's Authority to Issue Noncompete Rule
The decisions by the U.S. District Court for the Northern District of Texas and the U.S. District Court for the Eastern District of Pennsylvania were in direct conflict. The conflicting decisions created even more uncertainty regarding whether the FTC has the power to issue substantive rules preventing unfair methods of competition.
August 05, 2024 at 10:37 AM
5 minute read
The FTC's historic rule banning most employment-based noncompetition agreements (the noncompete rule), and its authority to issue such a rule, were the subject of court decisions handed down in the month of July. However, the decisions by the U.S. District Court for the Northern District of Texas and the U.S. District Court for the Eastern District of Pennsylvania were in direct conflict. The conflicting decisions created even more uncertainty regarding whether the FTC has the power to issue substantive rules preventing unfair methods of competition.
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Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
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Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
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