On September 1, 2023, California Governor Gavin Newsom signed a new law that will profoundly change how companies in the state can use non-compete agreements. Known as Senate Bill 699, the law amends the California Business & Professions Code Section 16600. It will prohibit employers from entering into or even trying to enforce a non-compete…
Artificial Intelligence is swiftly altering the panorama of our economy, cultural dynamics, political landscape, and civic interactions. Of the various AI technologies being developed, generative artificial intelligence (generative AI) has particularly emerged as a robustly accessible tool, aiding millions of individuals and businesses globally. Generative AI involves algorithms capable of generating novel outputs within certain…
In a recent development in finance law, the United Kingdom’s Financial Conduct Authority (FCA) has introduced rules to allow lenders of residential mortgages to vary contracts more easily. The goal is to ease the financial burden on borrowers in the wake of rising interest rates and other financial stressors. This report was first detailed by…
In a landmark ruling on September 6, 2023, the Georgia Supreme Court reiterated that Georgia courts are required to first adjudicate if a restrictive covenant is enforceable under local Georgia law prior to applying a foreign choice-of-law provision. This has significant implications, especially for multi-national corporations operating in Georgia and relying on restrictive covenants to…
In less than a fortnight following its last sanctions against a private employer for purported transgressions of whistleblower protection rules, the Security and Exchange Commission (SEC) has struck again. This time, the SEC is focusing on the phrasing of a separation agreement that it claims contradicts Rule 21F-17(a) of the Exchange Act (“Rule 21F”). Just…
Artificial intelligence (AI) innovations have dramatically reshaped numerous industries over the past decade, with the media and entertainment sector being prominently influenced. Triggered by advances in generative AI (GenAI), novel tools have emerged, offering creative solutions that barely require human involvement. Legal professionals within this space need to keep abreast of these changes and the…
Recently, the Israeli Ministry of Justice published a memorandum of law amending the Contracts Law. The amendment seeks to introduce unique rules of interpretation to business contracts. There’s been a wave of dramatic headlines in the economic press suggesting that Justice Minister Yariv Levin is attempting to nullify the Supreme Court’s Aprofim ruling through this…
In the recent ABCast episode 21 titled “Due Diligence”, the host, Janathan Allen, delved into the vital aspect of Mergers & Acquisitions colloquially termed as M & A: the need for thorough and comprehensive due diligence. Speaking at length about the complexities and nuances involved, Allen underpinned that due diligence is far more than a…
August 2023 has proven to be a significant month with two noteworthy GAO protests. Legal professionals around the globe, particularly those working with or within corporate entities interested in government contracts, must take notice of these pivotal findings. One of the protests brought forth explores the risks that come with the use of former federal…
In a significant development in the legal landscape of restrictive covenants, the National Labor Relations Board (NLRB) has moved from theory to action. The Regional Director of Region 9 of the NLRB filed a consolidated complaint. The crux of the complaint alleges that certain restrictive covenants contained in offer letters and policies in an employee…
The Missouri Department of Economic Development is looking to modify its Historic Tax Credit Regulations, a move which carries significant implications for both the legal sector and all stakeholders involved in rehabilitating historic structures in Missouri. The Missouri Historic Structures Rehabilitation Tax Credit Program, launched in 1998, offers eligible taxpayers a credit equivalent to twenty-five…
High-profile mergers and acquisitions often garner both media attention and the watchful eye of the Federal Trade Commission (FTC). However, deals that fall below the $100-$110 million threshold escape the FTC’s purview, as they are not required to be reported. This gap in regulatory oversight has been brought into sharp relief by FTC Chair Lina…
As the legal landscape continually evolves, it has become evident that many states are increasingly limiting the use of non-competition and non-solicitation restrictions. Especially noteworthy is the recent development in California, where a new law was enacted on September 1, 2023, to further restrict these contractual provisions. The law, known as SB 699, significantly expands…
The evolving landscape of construction is leaning heavily toward sustainable or “green” practices. Not only is this shift influenced by governmental legislation, tax incentives, and industry developments but a significant push is also coming from consumers, corporations, and shareholders. A recent article in Properties Magazine reveals how the industry’s key players are allocating the risks…
As the throws of competition pave the path for business advancements, the matter of noncompete agreements often hurdles into the spotlight. In the state of California, the general prohibition against noncompete agreements, barring unique exceptions, had been unwavering until recently. Under California Business and Professions Code (Code) Section 16600, employers were generally proscribed from entering…
The United States’ antiboycott laws and regulations date back to the disco era, a time when the legal landscape was quite different from today’s fast-paced world of sanctions and export controls. Despite the swift changes we often see in these areas, updates to the antiboycott regulations or enforcement strategies have been rare until recently. Last…
The Chancery Lane Project, a non-profit committed to addressing climate change through legal practice, announced on Tuesday that it will release a set of climate clauses specifically for use in contracts within the United States. These clauses can be used by attorneys and businesses without any copyright restrictions. The pack will contain around ten clauses…
Changes to federal overtime regulations stand at the threshold of another likely overhaul, creating a pressing issue that both corporations and law firms should follow closely. The Department of Labor proposed alterations to the so-called “white collar” exemptions to the federal overtime regulations on August 30, 2023. If these propositions are adopted and effectively put…
The Consumer Financial Protection Bureau (CFPB) has swiftly and positively responded to a recent petition by consumer advocacy groups proposing a ban on pre-dispute arbitration clauses within consumer contracts. This news follows after these organizations submitted a Petition for Rulemaking to the CFPB last week. The petition argues against the use of these clauses which…
Following the recent expiry of the United Auto Workers’ (UAW) labor contracts with the “Detroit Three” automakers on September 14, 2023, employers in the manufacturing sector and others within the automotive supplier network are faced with the task of ensuring compliance with immigration rules amidst a turbulent strike situation. After negotiations broke down between the…
In a contentious turn of events, MetroStar Systems, Inc. has raised a protest against the decision made by the Department of Justice (DOJ) to issue five indefinite-delivery, indefinite-quantity (IDIQ) contracts related to information technology support services. MetroStar Systems alleges that the DOJ’s examination of offerors’ technical proposals was both unreasonable and unequal, and has questioned…
In a move capturing attention around the legal community, the Delaware Court of Chancery recently declared noncompetition restrictions applied against former employees as unenforceable. This decision was made on the basis that the agreement language did not expressly prohibit competition with the company, but solely the private equity owner of the company. The case, Frontline…
The latest episode in the AGG Talks series deliberates on the complications and strategies surrounding inbound franchising in the United States, particularly by foreign franchisors. This is an essential listen for attorneys, business owners, and legal professionals trying to make sense of the franchising arena in the US. In this episode, Mike Burke, a corporate…
In a world where noncompete agreements are under growing scrutiny and risk of being invalidated, large corporations and law firms are on the hunt for alternative strategies to protect their interests. According to a recent article by Proskauer Rose LLP, originally published in Legal Dive, some entities have begun to favor forfeiture provisions as a…
In an recent development, a coalition of consumer advocacy organizations lodged a Petition for Rulemaking with the Consumer Financial Protection Bureau (CFPB) to push for the prohibition of pre-dispute arbitration clauses in consumer contracts. These clauses typically restrict consumers to arbitration instead of litigation when disputes arise. The consumer groups assert such clauses work in…