Texas Court Strikes Down FTC Noncompete Ban Nationally
On Tuesday, August 20, a Texas federal court issued a national injunction preventing enforcement of the FTC's rule banning noncompete agreements. The court's ruling is attached below.
This outcome was predicted here when the rule became effective in April:
FTC Ban on Noncompete Agreements Not Likely
Court Upholds BioPoint's $7.5 Million Win in Trade Secrets Case
With attorney's fees, Catapult now owes BioPoint $7,554,402, plus accrued interest. BioPoint will soon be in a position to pursue collection activities if the judgment is not paid. This could include garnishing Catapult's bank account and clients who owe fees.
Pennsylvania Federal Court Upholds FTC's Non-Compete Ban
Ruling conflicts with Texas court ruling - final outcome still undetermined
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As previously reported here, there are two pending federal court lawsuits challenging the Federal Trade Commision's rule banning non-compete agreements in the United States. Background here:
FTC’s Non-Compete
System One and Acara Resolve Tempnapping Case
SLN has been following a case involving an attempted workforce transfer by a staffing firm client. The client, Alstom Transportation, attempted to move the workers of System One to its new staffing supplier, Acara Solutions. System One was of course not happy about this and sued Alcara under two theories:
Court: FTC Ban on Non-Competes Invalid, but...
Judge declines to enter national injunction
The Federal Trade Commission's rule banning all non-complete agreements, slated to become effective on September 4, 2024, has generated much commentary since it was approved in April of this year. When the Rule came out in April, Staffing Legal news noted: "
Allegis vs Jobot: Jobot Wins Again
Allegis Group takes another loss in its home court
Background
Last year Staffing Legal News reported on a noncompete loss suffered by Allegis in its "home court" in Maryland, where the company is based. In that case, Allegis and its subsidiary Aston Carter sued former employee Christopher J.
FTC Ban on Non-Compete Agreements Not Likely to Hold Up
Staffing is a highly competitive business, and non-compete agreements are widely used by employers in the industry. In coming days, there will be a lot of news about the Federal Trade Commission's move to outlaw almost all existing non-compete agreements, defined as any agreement that prevents an employee
Double Dipping Employees on the Rise
Cross Country Staffing lawsuit highlights the problem - a recruiter with three full time jobs...
The rise of remote work has created opportunity for workers to hold more than one "full time" job. A 2023 report by organizational consultant McKinsey estimates that 5% of a typical company'
Big Law Recruiter Loses Appeal of $6,391,732 Award to Former Employer
Collection efforts have recruiter on the run
In September 2022, Staffing Legal news reported that a Texas federal judge found legal search recruiter Evan P. Jowers was liable to his former employer, MWK Recruiting, for misappropriating candidate lists and violating his non-competition agreement:
Court Denies Acara's Motion to Dismiss System One's Tempnapping Case
Injunction Hearing Scheduled
In unusually rapid fashion, U.S. District Court Judge Maryland Horan has denied Acara Solutions' request for dismissal of System One's "tempnapping" lawsuit filed last month in Pennsylvania. The lawsuit (attached below) seeks to prevent Acara from hiring 200 System One workers
Healthcare Giants in Heated Texas Noncompete Battle
On November 13, 2023, AMN Healthcare filed a lawsuit (attached below) against Aya Healthcare and Robert Wolf, who before his hire by Aya was a tenured (20 years) senior manager at AMN.
System One Brings "Tempnapping" Suit Against Acara Solutions
Is this a trend?
This sort of thing used to happen more frequently 25 years ago. A client decides to ditch its existing staffing agency and cuts a deal with a competing agency to take over the incumbent agency's workforce. Sometimes the issue was service, but more often
Another Shoe Drops in Lawsuit Against Legal Recruiter
Former employer wins attorney's fees - final award now $6,391,732.
Hayes Medical Staffing Wins Injunction Against Jobot Hires
But court declines to enforce noncompete agreements.
Update on Mass Tempnapping Lawsuit
Last year SLN reported on a rare workforce transfer case in which it is alleged that a Business Development Manager for Surge Staffing left for a competitor, Resolve HR, LLC, and took 36 temps on assignment with her.
National Staffing Solutions Sues Former Employee Under Computer Fraud Statute
Lawsuit alleges former nurse recruiter stole candidate database after loading computer sharing software
National Staffing Solutions has filed an unusual data theft lawsuit in Florida (Complaint attached). While data theft cases are not uncommon, it is rare to see one that seems to fit the requirements for relief under the
BIOPOINT VS CATAPULT SOLUTIONS GROUP: NONCOMPETE CASE OF THE YEAR
Inside job yields a $5,061,444 damage award - ruling pending on $2,503,457 attorneys' fee claim
The largest damage awards in unfair competition cases usually involve some form of trade secret misappropriation, and this one is no exception. The last one I wrote about ($3,640,
Update on Massive Non-Compete Damage Award
Last year I wrote a story about a huge damage award in a staffing firm noncompete case. Specifically, on September 15, 2022, a Texas Federal Judge ruled that international legal search recruiter Evan P. Jowers is liable to his former employer for misappropriating trade secrets and violating his non-competition agreement.
Minnesota Bans Non-Competes, Part 2
Don't forget contracts of temporary workers and independent contractors (and employee handbooks)
As I reported in my last post, Minnesota has banned non-compete agreements prospectively, effective July 1, 2023. This means that agreements signed on or after that date must not contain provisions that prevent employees and independent
Minnesota Bans Non-Competes
Minnesota Governor Tim Walz just signed a law banning noncompete agreements in the state. Unlike restrictions in some other states, the ban is not limited in scope to certain wage groups or occupations. It is universal, the only exception applying to business owners when the business is sold.
Hayes Medical Staffing Sues Jobot and Former Employees
Hayes Medical Staffing has filed a lawsuit in U.S. District Court for the Southern District of Florida against former employees Amy Eichelberg, Allison Patierno, and Scott Simon, as well as their new employer, Jobot LLC. The complaint (attached below) contains claims for breach of contract, misappropriation of trade secrets,
The Federal Trade Commission’s Proposed Non-Compete Ban and the Staffing Industry
By Bill Josey, Editor, Staffing Legal News - 11 Jan 2023
Background
On January 5, 2023, the Federal Trade Commission published a proposed regulation flatly banning all employee noncompete agreements, defined as any agreement that expressly or functionally “prevents the worker from seeking or accepting employment with a person, or
Another Tempnapping in Progress
In October I wrote about a temp transfer case in Ohio in which Surge Staffing alleged that a former employee, working with a competitor, pulled off a switch of 10 temps on assignment to the competitor's payroll, presumably with the client's cooperation.
Recruiting Agency Awarded $3,640,132.60 in Lawsuit Against Former Employee
Non-compete case provides insights into Big Law recruiting.
Aerotek Trademark Suit Against Jobot Just the Tip of the Iceberg
Lawsuit appears to be just one front in a larger battle between the staffing giant and upstart Jobot.
Mass Tempnapping In Progress!
Lawsuit alleges former Branch Manager flipped 36 temps on assignment to her new employer.
Barrett Business Systems Sues Two Competing Former Employees and Their Wives
On September 15, 2022, Seattle-based Barrett Business Systems launched an unfair competition suit in Washington state against two former employees, Charles Colmenero and Santiago Alejo. The complaint alleges that the former Area Manager and Recruiter "established a competing business, Repsel Associates, Inc. dba Personna Employer Services while working for
