Russell Beck Featured in Bloomberg Law on Noncompete Agreements

January 15, 2023
, , , , , , , , , Federal Noncompete Regulation, News, Noncompete agreements

Russell Beck was quoted in a Bloomberg Law article about the FTC’s proposal to ban noncompete agreements.

The story is titled “FTC’s Noncompete Ban Mirrors State Proposals Before Scaling Back.” The January 9, 2023, article was written by Chris Marr, who writes about labor & employment news for Bloomberg Law.

The article discusses the proposed rule recently issued by the Federal Trade Commission that would essentially ban noncompete agreements.

The article quotes Russell as follows:

“I expect that the FTC will pare back the proposed rule to make it address the abuses,” which include “using them for low-wage workers, using overly-broad noncompetes, and disclosing the requirement of a noncompete the day the employee shows up for work,” said Russell Beck, an employment lawyer with Beck Reed Riden LLP in Boston.

The FTC rule is widely expected to face legal challenges, as many lawyers and business interests such as the US Chamber of Commerce question whether Congress delegated such broad rulemaking authority to the commission.

“Even though the FTC likely doesn’t have authority to issue any rule on employee noncompetes outside of mergers, I think if they create a narrow rule, it will be far less likely to be challenged,” Beck said.

____

Russell frequently writes about current efforts to regulate noncompete agreements. He was featured on NPR and quoted in the New York Times discussing federal regulatory efforts targeting noncompete agreements. In January 2023, Russell wrote an article for Law360 called “Companies Must Brace For FTC’s Overbroad Noncompete Rule.” In April 2020, Russell Beck and Erika Hahn’s article about the FTC’s investigation about whether it should regulate noncompetes was published by Law360. In July 2019, Law360 published Russell Beck’s analysis of misconceptions in the noncompete debate.

For up-to-the-minute analysis of legal issues concerning trade secrets and noncompete agreements in Massachusetts and across the United States, read Russell Beck’s blog, Fair Competition Law.

eck Reed Riden LLP is among the leading authorities in trade secret, noncompete, and unfair competition law, and our experience handling these matters is backed by our extensive employment law and business litigation experience. Our hand-picked team combines attorneys with complementary expertise and practical experience.

The Wall Street Journal featured Beck Reed Riden LLP’s noncompete agreement experience. In 2016, the White House issued a report entitled, “Non-Compete Agreements: Analysis of the Usage, Potential Issues, and State Responses,” relying in part on Beck Reed Riden LLP’s research and analysis, including its 50 State Noncompete Survey.

Russell Beck’s work in this area is well recognized, and includes:

  • Over thirty years of experience working on trade secret, noncompete, and unfair competition matters
  • Assisting the Obama White House as part of a small working group to develop President Obama’s Noncompete Call to Action
  • Authoring the book Negotiating, Drafting, and Enforcing Noncompetition Agreements and Related Restrictive Covenants (6th ed., MCLE, Inc. 2021), used by other lawyers to help them with their noncompete matters
  • Authoring the book Trade Secrets Law for the Massachusetts Practitioner (1st ed. MCLE 2019), covering trade secrets nationally, with a focus on Massachusetts law
  • Drafting and advising on legislation for the Massachusetts Legislature to define, codify, and improve noncompetition law
  • Teaching Trade Secrets and Restrictive Covenants at Boston University School of Law
  • Founding and administering the award-winning blog, Fair Competition Law
  • Establishing and administering the Noncompete Lawyers and Trade Secret Protection groups on LinkedIn, with over 1,660 and 870 members, respectively, around the world
  • Founded and chaired the Trade Secret / Noncompete Practice for an AmLaw 100 firm

In addition, Russell was honored for his work in this area of law in the 2020 Chambers USA Guide, which stated that Russell Beck is “an expert in the field of trade secret and restrictive covenant law,” and is also noted for his “ability to adjust and come up with successful solutions.” Chambers noted that Russell “basically wrote the new Massachusetts statute on noncompetes” and that “he’s an expert in employee mobility and nonrestrictive covenants.”

Beck Reed Riden LLP is Boston’s innovative litigation boutique. Our lawyers have years of experience working with clients ranging from Fortune 500 companies to start-ups and individuals. We focus on business litigation and employment.

We are experienced litigators and counselors, helping our clients as business partners to resolve issues and develop strategies that best meet our clients’ legal and business needs – before, during, and after litigation. We’re ready to roll up our sleeves and help you. Read more about us, the types of matters we handle, and what we can do for you here.

Russell Beck Featured in Bloomberg Law on Noncompete Agreements

October 19, 2022
, , , , , , , , News, Noncompete agreements

Russell Beck was quoted in a Bloomberg Law article about legislation in New Jersey that would require garden leave benefits in noncompete agreements.

The story is titled “N.J. Noncompete Proposal Would Make Post-Employment Pay the Norm.” The September 9, 2022, article was written by Chris Marr, who writes about labor & employment news for Bloomberg Law.

The article discusses legislation in New Jersey governing noncompete agreements that would “require full pay plus benefits for former employees whenever a noncompete or other restrictive covenant is in effect.”

The article quotes Russell as follows:

“The payment of money unquestionably makes it easier to enforce a noncompete,” said Russell Beck, an employment lawyer with Beck Reed Riden LLP in Boston.

As scrutiny of employee noncompete agreements spreads among state legislatures and courts, Beck said he’s seen a small uptick in companies opting to include garden leave in their agreements without a legal mandate for it, particularly in the financial services industry.

Russell explains the origins of the the term “garden leave” as follows:

Although often used in the US to refer to noncompetes, the term “garden leave” originated with a different kind of post-employment pay, Beck said. Employees in the UK often are contractually obligated to give a notice period before leaving their job. If the employer doesn’t want the employee on site after they’ve given notice, “the company will pay you to sit in your garden” instead, he said.

____

Russell frequently writes about current legislative efforts to regulate noncompete agreements. He was featured on NPR and quoted in the New York Times discussing federal regulatory efforts targeting noncompete agreements. In April 2020, Russell Beck and Erika Hahn’s article about the FTC’s investigation about whether it should regulate noncompetes was published by Law360. In July 2019, Law360 published Russell Beck’s analysis of misconceptions in the noncompete debate.

For up-to-the-minute analysis of legal issues concerning trade secrets and noncompete agreements in Massachusetts and across the United States, read Russell Beck’s blog, Fair Competition Law.

eck Reed Riden LLP is among the leading authorities in trade secret, noncompete, and unfair competition law, and our experience handling these matters is backed by our extensive employment law and business litigation experience. Our hand-picked team combines attorneys with complementary expertise and practical experience.

The Wall Street Journal featured Beck Reed Riden LLP’s noncompete agreement experience. In 2016, the White House issued a report entitled, “Non-Compete Agreements: Analysis of the Usage, Potential Issues, and State Responses,” relying in part on Beck Reed Riden LLP’s research and analysis, including its 50 State Noncompete Survey.

Russell Beck’s work in this area is well recognized, and includes:

  • Over thirty years of experience working on trade secret, noncompete, and unfair competition matters
  • Assisting the Obama White House as part of a small working group to develop President Obama’s Noncompete Call to Action
  • Authoring the book Negotiating, Drafting, and Enforcing Noncompetition Agreements and Related Restrictive Covenants (6th ed., MCLE, Inc. 2021), used by other lawyers to help them with their noncompete matters
  • Authoring the book Trade Secrets Law for the Massachusetts Practitioner (1st ed. MCLE 2019), covering trade secrets nationally, with a focus on Massachusetts law
  • Drafting and advising on legislation for the Massachusetts Legislature to define, codify, and improve noncompetition law
  • Teaching Trade Secrets and Restrictive Covenants at Boston University School of Law
  • Founding and administering the award-winning blog, Fair Competition Law
  • Establishing and administering the Noncompete Lawyers and Trade Secret Protection groups on LinkedIn, with over 1,660 and 870 members, respectively, around the world
  • Founded and chaired the Trade Secret / Noncompete Practice for an AmLaw 100 firm

In addition, Russell was honored for his work in this area of law in the 2020 Chambers USA Guide, which stated that Russell Beck is “an expert in the field of trade secret and restrictive covenant law,” and is also noted for his “ability to adjust and come up with successful solutions.” Chambers noted that Russell “basically wrote the new Massachusetts statute on noncompetes” and that “he’s an expert in employee mobility and nonrestrictive covenants.”

Beck Reed Riden LLP is Boston’s innovative litigation boutique. Our lawyers have years of experience working with clients ranging from Fortune 500 companies to start-ups and individuals. We focus on business litigation and employment.

We are experienced litigators and counselors, helping our clients as business partners to resolve issues and develop strategies that best meet our clients’ legal and business needs – before, during, and after litigation. We’re ready to roll up our sleeves and help you. Read more about us, the types of matters we handle, and what we can do for you here.

Russell Beck Featured in Bloomberg Law on Noncompete Agreements

February 11, 2022
, , , , , , , , , Federal Noncompete Regulation, News, Noncompete agreements

Russell Beck was quoted in a Bloomberg Law article about recent state initiatives to regulate the use of noncompete agreements for low-wage workers.

The story is titled “Red State Lawmakers Look at Noncompete Bans for Low-Wage Workers.” The February 9, 2022, article was written by Chris Marr, who writes about labor & employment news for Bloomberg Law.

The article discusses recent legislative efforts in several states to regulate or prohibit the use of non-competition agreements for lower-wage and hourly workers.

The article quotes Russell as follows:

Research suggests 18% of the U.S. workforce is bound by a noncompete, and 38% of workers have signed one previously.

How often employers attempt to enforce noncompetes against low-wage workers is difficult to measure, said Russell Beck, attorney at Beck Reed Riden LLP in Boston, whose practice focuses largely on employment covenants. Enforcement sometimes happens through civil litigation, but can also take the form of a verbal reminder or a cease-and-desist letter to the employee, he said.

“There are a lot of low-wage workers bound by noncompetes and complying with them, even when they might not in fact be enforceable,” Beck said.

Russell explains that the recent legislative activity at the state level mirrors federal efforts to regulate noncompete agreements:

The state legislative activity also comes as the Federal Trade Commission considers nationwide regulation to limit noncompetes—a process still in the research stage, Beck said. President Joe Biden called on the FTC last July to ban or limit employee noncompetes as part of a sweeping executive order aimed at improving competition in the economy.

In the article, Russell also addresses the national influence of model legislation to reform noncompete agreements that was published last year by the non-partisan Uniform Law Commission:

Release of the commission’s model should help motivate more states to establish clear standards for enforceability of noncompetes, as well as similar covenants such as nonsolicitation agreements, said Beck, who helped write that sample bill.

Business groups have an incentive to want clear, uniform standards, he said, since now many states’ courts determine whether noncompetes are enforceable on a case-by-case basis relying on common law. But don’t expect a rush of states suddenly all adopting the model language, he added.

“It won’t be overnight. It will take years” to potentially get to a majority of states adopting some version of the model, Beck said. “States are really taking a careful look at their current laws.”

Russell notes that the jury is still out as to whether regulations to limit enforcement of noncompete agreements has any measurable, positive impact on wages and other economic activity:

The success of existing state laws at preventing overuse or abuse of employee noncompetes is tough to measure, Beck and Farley each said.

Research into Oregon’s ban on noncompetes for low-wage workers—published by University of Maryland Professor Evan Starr and FTC Economist Michael Lipsitz—found the law might have helped produce a small boost to wage growth and job mobility. But Beck noted it’s hard to be sure whether the noncompete law was the main cause of those economic impacts.

____

Russell frequently writes about current legislative efforts to regulate noncompete agreements. He was featured on NPR and quoted in the New York Times discussing federal regulatory efforts targeting noncompete agreements. In April 2020, Russell Beck and Erika Hahn’s article about the FTC’s investigation about whether it should regulate noncompetes was published by Law360. In July 2019, Law360 published Russell Beck’s analysis of misconceptions in the noncompete debate.

For up-to-the-minute analysis of legal issues concerning trade secrets and noncompete agreements in Massachusetts and across the United States, read Russell Beck’s blog, Fair Competition Law.

eck Reed Riden LLP is among the leading authorities in trade secret, noncompete, and unfair competition law, and our experience handling these matters is backed by our extensive employment law and business litigation experience. Our hand-picked team combines attorneys with complementary expertise and practical experience.

The Wall Street Journal featured Beck Reed Riden LLP’s noncompete agreement experience. In 2016, the White House issued a report entitled, “Non-Compete Agreements: Analysis of the Usage, Potential Issues, and State Responses,” relying in part on Beck Reed Riden LLP’s research and analysis, including its 50 State Noncompete Survey.

Russell Beck’s work in this area is well recognized, and includes:

  • Over thirty years of experience working on trade secret, noncompete, and unfair competition matters
  • Assisting the Obama White House as part of a small working group to develop President Obama’s Noncompete Call to Action
  • Authoring the book Negotiating, Drafting, and Enforcing Noncompetition Agreements and Related Restrictive Covenants (6th ed., MCLE, Inc. 2021), used by other lawyers to help them with their noncompete matters
  • Authoring the book Trade Secrets Law for the Massachusetts Practitioner (1st ed. MCLE 2019), covering trade secrets nationally, with a focus on Massachusetts law
  • Drafting and advising on legislation for the Massachusetts Legislature to define, codify, and improve noncompetition law
  • Teaching Trade Secrets and Restrictive Covenants at Boston University School of Law
  • Founding and administering the award-winning blog, Fair Competition Law
  • Establishing and administering the Noncompete Lawyers and Trade Secret Protection groups on LinkedIn, with over 1,660 and 870 members, respectively, around the world
  • Founded and chaired the Trade Secret / Noncompete Practice for an AmLaw 100 firm

In addition, Russell was honored for his work in this area of law in the 2020 Chambers USA Guide, which stated that Russell Beck is “an expert in the field of trade secret and restrictive covenant law,” and is also noted for his “ability to adjust and come up with successful solutions.” Chambers noted that Russell “basically wrote the new Massachusetts statute on noncompetes” and that “he’s an expert in employee mobility and nonrestrictive covenants.”

Beck Reed Riden LLP is Boston’s innovative litigation boutique. Our lawyers have years of experience working with clients ranging from Fortune 500 companies to start-ups and individuals. We focus on business litigation and employment.

We are experienced litigators and counselors, helping our clients as business partners to resolve issues and develop strategies that best meet our clients’ legal and business needs – before, during, and after litigation. We’re ready to roll up our sleeves and help you. Read more about us, the types of matters we handle, and what we can do for you here.

Russell Beck Featured in Law360 on FTC Noncompete Regulation Efforts

February 8, 2022
, , , , , , , , , Federal Noncompete Regulation, News, Noncompete agreements

Russell Beck‘s article about a recent Federal Trade Commission and U.S. Department of Justice workshop focused on noncompete agreements was published by Law360 under the title, “What New FTC Workshop Revealed About Noncompete Regs.”

The FTC workshop follows President Biden’s Executive Order on noncompete agreements

In the article, Russell observes that:

Although the scope of the workshop was wide-ranging, there was a clear focus on noncompete agreements.

Indeed, the topic of noncompetes came up repeatedly throughout the course of the full, two-day workshop.

The discussion began with FTC Chair Lina Khan referencing noncompetes as “take-it-or-leave-it agreements.” And in the closing remarks Karina Lubell, assistant chief of the DOJ’s Competition Policy and Advocacy Section, noted that, like other vertical restrictions, noncompetes are harmful, “especially for low income and other workers ill positioned to negotiate” the restrictions “or later challenge them in court.”

During the workshop, panelists shared divergent perspectives and referenced various studies on the effects of restrictive covenants. In this regard, Russell writes that, “[w]ith so much conflicting information — studies contradicting other studies, evidence disproving studies, misplaced assumptions about the rise in use of noncompetes, etc. — and such high stakes (nothing short of the impact on the U.S. economy), regulators need to be extremely careful how they proceed. These issues are plainly more complicated than they appear, and there seems to be a general understanding that additional research is required.”

Russell’s article discusses a new study issued by the Federal Reserve Bank of Philadelphia that was not discussed during the workshop. In that study, the Federal Reserve Bank of Philadelphia’s study found “little support for the widely held view that enforcement of non-compete agreements negatively affects the entry rate of new firms or the rate of jobs created by new firms.”

Russell writes:

To the contrary, the study — which focused on Michigan’s 1985 elimination of a ban on noncompetes — found that increased enforcement [of noncompetes] had no effect on the entry rate of startups, but a positive effect on jobs created by these startups in Michigan relative to a counterfactual of states that did not enforce such covenants pre- and post-treatment. Specifically, we find that a doubling of enforcement led to an increase of about 8 percent in the startup job creation rate in Michigan. We also find evidence that enforcing non-competes positively affected the number of high-tech establishments and the level of high-tech employment in Michigan.

According to Russell, “[t]his study thus raises the serious prospect that bans on noncompetes intended to help startups will do precisely the opposite.”

____

Russell frequently writes about current federal efforts to regulate noncompete agreements. He was featured on NPR discussing President Biden’s Executive Order. In April 2020, Russell Beck and Erika Hahn’s article about the FTC’s investigation about whether it should regulate noncompetes was published by Law360. In July 2019, Law360 published Russell Beck’s analysis of misconceptions in the noncompete debate. In December 2019, Law360 also published an article by Russell Beck and Erika Hahn about federal noncompete reform efforts.

For up-to-the-minute analysis of legal issues concerning trade secrets and noncompete agreements in Massachusetts and across the United States, read Russell Beck’s blog, Fair Competition Law.

eck Reed Riden LLP is among the leading authorities in trade secret, noncompete, and unfair competition law, and our experience handling these matters is backed by our extensive employment law and business litigation experience. Our hand-picked team combines attorneys with complementary expertise and practical experience.

The Wall Street Journal featured Beck Reed Riden LLP’s noncompete agreement experience. In 2016, the White House issued a report entitled, “Non-Compete Agreements: Analysis of the Usage, Potential Issues, and State Responses,” relying in part on Beck Reed Riden LLP’s research and analysis, including its 50 State Noncompete Survey.

Russell Beck’s work in this area is well recognized, and includes:

  • Over thirty years of experience working on trade secret, noncompete, and unfair competition matters
  • Assisting the Obama White House as part of a small working group to develop President Obama’s Noncompete Call to Action
  • Authoring the book Negotiating, Drafting, and Enforcing Noncompetition Agreements and Related Restrictive Covenants (6th ed., MCLE, Inc. 2021), used by other lawyers to help them with their noncompete matters
  • Authoring the book Trade Secrets Law for the Massachusetts Practitioner (1st ed. MCLE 2019), covering trade secrets nationally, with a focus on Massachusetts law
  • Drafting and advising on legislation for the Massachusetts Legislature to define, codify, and improve noncompetition law
  • Teaching Trade Secrets and Restrictive Covenants at Boston University School of Law
  • Founding and administering the award-winning blog, Fair Competition Law
  • Establishing and administering the Noncompete Lawyers and Trade Secret Protection groups on LinkedIn, with over 1,660 and 870 members, respectively, around the world
  • Founded and chaired the Trade Secret / Noncompete Practice for an AmLaw 100 firm

In addition, Russell was honored for his work in this area of law in the 2020 Chambers USA Guide, which stated that Russell Beck is “an expert in the field of trade secret and restrictive covenant law,” and is also noted for his “ability to adjust and come up with successful solutions.” Chambers noted that Russell “basically wrote the new Massachusetts statute on noncompetes” and that “he’s an expert in employee mobility and nonrestrictive covenants.”

Beck Reed Riden LLP is Boston’s innovative litigation boutique. Our lawyers have years of experience working with clients ranging from Fortune 500 companies to start-ups and individuals. We focus on business litigation and employment.

We are experienced litigators and counselors, helping our clients as business partners to resolve issues and develop strategies that best meet our clients’ legal and business needs – before, during, and after litigation. We’re ready to roll up our sleeves and help you. Read more about us, the types of matters we handle, and what we can do for you here.

Russell Beck Featured in Law360 on Federal Noncompete Order

July 26, 2021
, , , , , , , , News, Noncompete agreements

Russell Beck‘s article about President Biden’s recent Executive Order on noncompete agreements was published by Law360 under the title, “FTC Should Take Nuanced Approach On Noncompete Regs.”

Among other things, Biden’s order encourages the FTC to exercise its rulemaking authority “to curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility.”

Russell’s analysis begins with an overview of recent state and federal initiatives to restrict or eliminate the use of noncompete agreements. With respect to Biden’s recent directive to the FTC, Russell explains that “even assuming that the FTC has authority to regulate in this area, proper regulation of noncompetes is a very nuanced issue with which states have wrestled for over 200 years.”

n the article, Russell notes that there are competing viewpoints about what the FTC should do.

On one side, there are opponents of noncompete agreements who seek to ban them altogether, variously contending that “non-compete clauses inflict real harms on workers and competition and offer no credible offsetting benefits to society,” and that “employers use non-compete clauses to discourage workers from seeking, or even exploring, alternative work and business opportunities.”

On the other side, Russell notes that there are many who urge restraint and suggest “that any regulation should focus on leveling the playing field and adding additional transparency and fairness to the use of noncompetes.” This was the approach suggested by Russell Beck and scores of other experts in the field who recently submitted a letter to the FTC.

Given that it may be more than a year before the FTC issues any noncompete regulations, Russell advises that companies take the following three steps now:

  1. Reach out to the FTC to share your view.
  2. Review any restrictive covenant agreements, including those contained not just in employment agreements, but in restricted stock unit agreements, stock option agreements, long-term incentive agreements and other agreements. Also, review all policies and codes of conduct and strengthen them as appropriate.
  3. Make sure that there is a culture of confidentiality at your company. Training is critical. If you are not providing training at all stages of the employment life cycle — at the time of onboarding, during the employment relationship, and at off-boarding — you are potentially exposing your work to contamination by someone else’s information, and exfiltration and loss of your own trade secrets.

Russell was recently featured on NPR discussing President Biden’s Executive Order. In April 2020, Russell Beck and Erika Hahn’s article about the FTC’s investigation about whether it should regulate noncompetes was published by Law360. In July 2019, Law360 published Russell Beck’s analysis of misconceptions in the noncompete debate. In December 2019, Law360 also published an article by Russell Beck and Erika Hahn about federal noncompete reform efforts.

____

For up-to-the-minute analysis of legal issues concerning trade secrets and noncompete agreements in Massachusetts and across the United States, read Russell Beck’s blog, Fair Competition Law.

eck Reed Riden LLP is among the leading authorities in trade secret, noncompete, and unfair competition law, and our experience handling these matters is backed by our extensive employment law and business litigation experience. Our hand-picked team combines attorneys with complementary expertise and practical experience.

The Wall Street Journal featured Beck Reed Riden LLP’s noncompete agreement experience. In 2016, the White House issued a report entitled, “Non-Compete Agreements: Analysis of the Usage, Potential Issues, and State Responses,” relying in part on Beck Reed Riden LLP’s research and analysis, including its 50 State Noncompete Survey.

Russell Beck’s work in this area is well recognized, and includes:

  • Over thirty years of experience working on trade secret, noncompete, and unfair competition matters
  • Assisting the Obama White House as part of a small working group to develop President Obama’s Noncompete Call to Action
  • Authoring the book Negotiating, Drafting, and Enforcing Noncompetition Agreements and Related Restrictive Covenants (6th ed., MCLE, Inc. 2021), used by other lawyers to help them with their noncompete matters
  • Authoring the book Trade Secrets Law for the Massachusetts Practitioner (1st ed. MCLE 2019), covering trade secrets nationally, with a focus on Massachusetts law
  • Drafting and advising on legislation for the Massachusetts Legislature to define, codify, and improve noncompetition law
  • Teaching Trade Secrets and Restrictive Covenants at Boston University School of Law
  • Founding and administering the award-winning blog, Fair Competition Law
  • Establishing and administering the Noncompete Lawyers and Trade Secret Protection groups on LinkedIn, with over 1,660 and 870 members, respectively, around the world
  • Founded and chaired the Trade Secret / Noncompete Practice for an AmLaw 100 firm

In addition, Russell was honored for his work in this area of law in the 2020 Chambers USA Guide, which stated that Russell Beck is “an expert in the field of trade secret and restrictive covenant law,” and is also noted for his “ability to adjust and come up with successful solutions.” Chambers noted that Russell “basically wrote the new Massachusetts statute on noncompetes” and that “he’s an expert in employee mobility and nonrestrictive covenants.”

Beck Reed Riden LLP is Boston’s innovative litigation boutique. Our lawyers have years of experience working with clients ranging from Fortune 500 companies to start-ups and individuals. We focus on business litigation and employment.

We are experienced litigators and counselors, helping our clients as business partners to resolve issues and develop strategies that best meet our clients’ legal and business needs – before, during, and after litigation. We’re ready to roll up our sleeves and help you. Read more about us, the types of matters we handle, and what we can do for you here.

Russell Beck Quoted in NPR Coverage of Biden Executive Order

July 20, 2021
, , , , , , , , News, Noncompete agreements

NPR logoA recent episode of Weekend Edition Saturday on NPR featured Russell Beck in a story titled “What Biden’s Latest Executive Order Means For Businesses And Consumers.”

The story focused on President Biden’s recently-issued Executive Order. Among other things, the order encourages the FTC to exercise its rulemaking authorty “to curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility.”

The story was reported by Andrea Hsu, NPR’s labor and workplace correspondent.

The following is a portion of Ms. Hsu’s interview with the host of Weekend Edition Saturday, Scott Simon:

Weekend Edition SaturdaySIMON: Can [President Biden] do that – a federal ban on noncompete agreements?

HSU: Well, it’s unclear. It’s certainly not going to be immediate, and it may not be a total ban. I talked with Russell Beck. He’s this attorney in Boston who tracks state laws on noncompetes. He thinks the Federal Trade Commission is likely to do something narrower, maybe something focused on low-wage workers. But he doesn’t think they’ll ban noncompetes in all workplaces.

RUSSELL BECK: I would be very surprised if the FTC went so far as to ban noncompetes for people who really do have trade secret information, other confidential information that needs to be protected.

HSU: But Beck says it’s also in question whether the FTC has the authority to enact such a ban. You know, regulation of noncompete agreements has until now been left to the states. Three states already ban them, California being the biggest, and close to a dozen states ban them for low-wage workers. So even if the FTC does move on this, it’s going to take a while. I spoke to a former acting chair of the FTC, and she said we may see a proposed rule out fairly quickly, but federal rulemaking, you know, takes forever. It has to be submitted to Congress. There are public comment periods, revisions and so on. And so it could be a year before a rule is issued. And that, Scott, would be considered fast.

Listen to the full story here.

Russell Beck was also quoted by NPR in an article appearing online discussing the same topic as follows:

[A] sweeping federal rule would be a significant departure and is expected to be challenged by businesses. At a workshop held by the FTC in January 2020, questions were raised over whether the agency even has the authority to enact a ban. Given the likelihood of legal challenges, some expect the FTC to take a narrow approach, for example banning noncompete agreements for low-wage workers rather than for everyone.

“I think a considered approach would probably be the likely approach,” says Russell Beck, a Boston attorney who has represented both employers and employees in noncompete cases.

He says he’d be very surprised if the FTC went so far as to ban noncompetes for workers who possess trade secrets or other confidential information that warrants protection.

In April 2020, Russell Beck and Erika Hahn’s article about the FTC’s investigation about whether it should regulate noncompetes was published by Law360. In July 2019, Law360 published Russell Beck’s analysis of misconceptions in the noncompete debate. In December 2019, Law360 also published an article by Russell Beck and Erika Hahn about federal noncompete reform efforts.

____

For up-to-the-minute analysis of legal issues concerning trade secrets and noncompete agreements in Massachusetts and across the United States, read Russell Beck’s blog, Fair Competition Law.

eck Reed Riden LLP is among the leading authorities in trade secret, noncompete, and unfair competition law, and our experience handling these matters is backed by our extensive employment law and business litigation experience. Our hand-picked team combines attorneys with complementary expertise and practical experience.

The Wall Street Journal featured Beck Reed Riden LLP’s noncompete agreement experience. In 2016, the White House issued a report entitled, “Non-Compete Agreements: Analysis of the Usage, Potential Issues, and State Responses,” relying in part on Beck Reed Riden LLP’s research and analysis, including its 50 State Noncompete Survey.

Russell Beck’s work in this area is well recognized, and includes:

  • Over thirty years of experience working on trade secret, noncompete, and unfair competition matters
  • Assisting the Obama White House as part of a small working group to develop President Obama’s Noncompete Call to Action
  • Authoring the book Negotiating, Drafting, and Enforcing Noncompetition Agreements and Related Restrictive Covenants (6th ed., MCLE, Inc. 2021), used by other lawyers to help them with their noncompete matters
  • Authoring the book Trade Secrets Law for the Massachusetts Practitioner (1st ed. MCLE 2019), covering trade secrets nationally, with a focus on Massachusetts law
  • Drafting and advising on legislation for the Massachusetts Legislature to define, codify, and improve noncompetition law
  • Teaching Trade Secrets and Restrictive Covenants at Boston University School of Law
  • Founding and administering the award-winning blog, Fair Competition Law
  • Establishing and administering the Noncompete Lawyers and Trade Secret Protection groups on LinkedIn, with over 1,660 and 870 members, respectively, around the world
  • Founded and chaired the Trade Secret / Noncompete Practice for an AmLaw 100 firm

In addition, Russell was honored for his work in this area of law in the 2020 Chambers USA Guide, which stated that Russell Beck is “an expert in the field of trade secret and restrictive covenant law,” and is also noted for his “ability to adjust and come up with successful solutions.” Chambers noted that Russell “basically wrote the new Massachusetts statute on noncompetes” and that “he’s an expert in employee mobility and nonrestrictive covenants.”

Beck Reed Riden LLP is Boston’s innovative litigation boutique. Our lawyers have years of experience working with clients ranging from Fortune 500 companies to start-ups and individuals. We focus on business litigation and employment.

We are experienced litigators and counselors, helping our clients as business partners to resolve issues and develop strategies that best meet our clients’ legal and business needs – before, during, and after litigation. We’re ready to roll up our sleeves and help you. Read more about us, the types of matters we handle, and what we can do for you here.

 

Russell Beck and Erika Hahn Featured in Law360 on Proposed Noncompete Ban

March 22, 2021
, , , , , , News, Noncompete agreements

Russell Beck and Erika Hahn‘s article on President Biden’s proposal to ban most noncompete agreements was published by Law360 under the title, “3 Ways to Plan for a Possible Federal Ban on Noncompetes.”

Their analysis begins with an overview of current federal initiatives to restrict or eliminate the use of noncompete agreements. Russell and Erika explain that, although these initiatives “are presumably well-intended, they typically rely on nascent, nuanced, inconclusive, and sometimes inconsistent research and reflexively draw misplaced causal inferences.”

According to their article, “now is the time to review and update your overall legitimate business interest protection strategy.”

Given the uncertainty around the future of noncompete agreements, Russell and Erika provide practical steps companies should consider to protect their business interests whether or not noncompete covenants are barred. These steps include consideration of the following employee agreements:

  • Narrowly-tailored noncompete agreements
  • Nondisclosure agreements
  • Nonsolicitation, noninterference and no-service agreements
  • No-recruit, no-raid and no-hire agreements
  • Invention assignment agreements
  • Springing (or “time out”) noncompetes

In their article, Russell and Erika observe that “even if noncompetes are banned, similar restrictions may survive (to the extent permitted by state law),” including the following:

  • Traditional garden leave/notice covenants: Through these agreements, employee are required to provide notice of resignation for a specified (typically, lengthy) period, during which they remain employed by their soon-to-be-former employer (but do no work) and, as a consequence, remain bound by their fiduciary duties (including to not compete).
  • Forfeiture-for-competition agreements and compensation-for-competition agreements: These are agreements by which an employee either forfeits certain benefits or pays some amount of money (often a percentage of revenues) if they engage in activities that are competitive with their former employer.
  • Compensation-for-noncompetition-choice agreements: These agreements provide for a payment (money, stock options, profit sharing or other consideration) to an employee who voluntarily chooses to refrain from competing. Unlike a forfeiture-for-competition provision (which is often considered a noncompete), nothing is forfeited. Instead, if they choose to refrain from competing, they receive compensation to which they otherwise would not have been entitled.

In April 2020, Russell Beck and Erika Hahn’s article about the FTC’s investigation about whether it should regulate noncompetes was published by Law360. In July 2019, Law360 published Russell Beck’s analysis of misconceptions in the noncompete debate. In December 2019, Law360 also published an article by Russell Beck and Erika Hahn about federal noncompete reform efforts.

____

For up-to-the-minute analysis of legal issues concerning noncompete agreements in Massachusetts and across the United States, read Russell Beck’s blog, Fair Competition Law.

eck Reed Riden LLP is among the leading authorities in trade secret, noncompete, and unfair competition law, and our experience handling these matters is backed by our extensive employment law and business litigation experience. Our hand-picked team combines attorneys with complementary expertise and practical experience.

The Wall Street Journal featured Beck Reed Riden LLP’s noncompete agreement experience. In 2016, the White House issued a report entitled, “Non-Compete Agreements: Analysis of the Usage, Potential Issues, and State Responses,” relying in part on Beck Reed Riden LLP’s research and analysis, including its 50 State Noncompete Survey.

Russell Beck’s work in this area is well recognized, and includes:

  • Over twenty five years years of experience working on trade secret, noncompete, and unfair competition matters
  • Assisting the Obama White House as part of a small working group to develop President Obama’s Noncompete Call to Action
  • Authoring the book Negotiating, Drafting, and Enforcing Noncompetition Agreements and Related Restrictive Covenants (5th ed., MCLE, Inc. 2015), used by other lawyers to help them with their noncompete matters
  • Authoring the book Trade Secrets Law for the Massachusetts Practitioner (1st ed. MCLE 2019), covering trade secrets nationally, with a focus on Massachusetts law
  • Drafting and advising on legislation for the Massachusetts Legislature to define, codify, and improve noncompetition law
  • Teaching Trade Secrets and Restrictive Covenants at Boston University School of Law
  • Founding and administrating the award-winning blog, Fair Competition Law
  • Establishing and administrating the Noncompete Lawyers and Trade Secret Protection groups on LinkedIn, with over 1,600 and 850 members, respectively, around the world
  • Founded and chaired the Trade Secret / Noncompete Practice for an AmLaw 100 firm

In addition, Russell was honored for his work in this area of law in the 2020 Chambers USA Guide, which stated that Russell Beck is “an expert in the field of trade secret and restrictive covenant law,” and is also noted for his “ability to adjust and come up with successful solutions.” Chambers noted that Russell “basically wrote the new Massachusetts statute on noncompetes” and that “he’s an expert in employee mobility and nonrestrictive covenants.”

Beck Reed Riden LLP is Boston’s innovative litigation boutique. Our lawyers have years of experience working with clients ranging from Fortune 500 companies to start-ups and individuals. We focus on business litigation and employment.

We are experienced litigators and counselors, helping our clients as business partners to resolve issues and develop strategies that best meet our clients’ legal and business needs – before, during, and after litigation. We’re ready to roll up our sleeves and help you. Read more about us, the types of matters we handle, and what we can do for you here.

 

Russell Beck and Erika Hahn Featured in Law360 on FTC Regulation of Noncompete Agreements

April 6, 2020
, , , , , , , News, Noncompete agreements

Russell Beck and Erika Hahn‘s response to the Federal Trade Commission’s investigation whether it should regulate noncompete agreements was published by Law360 under the title, “FTC Should Leave Regulation of Noncompetes to States.”

Russell’s response to the FTC’s inquiry can also be found at Fair Competition Law as “FTC Noncompete Workshop – Update on Our Submission.”

The analysis reflects the testimony submitted by 22 lawyers from around the country (including Russell Beck) to the FTC.  In sum, the testimony asserts that

noncompetes have been regulated by the states for over 200 years, and all 50 states have made policy decisions that make sense for their citizens and their economies. In more than 30 of those states, legislatures have recently been reevaluating their law, with different outcomes that balance competing interests in a way that reflects the economic realities of the particular state.

Nevertheless, in no state does the law permit unfettered use of noncompetes, nor has any state banned noncompetes wholesale since 1890. Rather, each of the 47 states permitting noncompetes allows them to be used, to a greater or lesser extent, only as necessary to protect companies from certain types of unfair competition.

Russell and Erika’s article further contends that the FTC should refrain from regulating noncompete agreements, as follows:

The FTC should not use its rulemaking authority to address noncompete clauses. Rather, the states should be left to evaluate and regulate their own economies as they see fit — as they have done for over 200 years. There is no gap to fill. All 50 states have made policy choices — and more than 30 of them have recently or are currently reevaluating those choices, choosing outcomes that make sense for their unique circumstances.

To the extent that the FTC has authority to promulgate a rule and chooses to exercise it, the FTC should be judicious. Before considering any regulatory action, it is important to understand the potential unintended consequences of significant changes in the law, including, for example, significantly increasing the likelihood that trade secrets will be unlawfully taken to a competitor and increasing the volume of more costly trade secret litigation.

The article concludes that,

While the laws are certainly in a state of flux and should remain the purview of the states, any changes should be made only with a proper factual basis — not on misplaced assumptions.

In July 2019, Law360 published Russell Beck’s analysis of misconceptions in the noncompete debate. In December 2019, Law360 also published an article by Russell Beck and Erika Hahn about federal noncompete reform efforts.

____

For up-to-the-minute analysis of legal issues concerning noncompete agreements in Massachusetts and across the United States, read Russell Beck’s blog, Fair Competition Law.

eck Reed Riden LLP is among the leading authorities in trade secret, noncompete, and unfair competition law, and our experience handling these matters is backed by our extensive employment law and business litigation experience. Our hand-picked team combines attorneys with complementary expertise and practical experience.

The Wall Street Journal featured Beck Reed Riden LLP’s noncompete agreement experience. In 2016, the White House issued a report entitled, “Non-Compete Agreements: Analysis of the Usage, Potential Issues, and State Responses,” relying in part on Beck Reed Riden LLP’s research and analysis, including its 50 State Noncompete Survey.

Russell Beck’s work in this area is well recognized, and includes:

  • Over twenty four years of working on trade secret, noncompete, and unfair competition matters
  • Assisting the Obama White House as part of a small working group to develop President Obama’s Noncompete Call to Action
  • Authoring the book Negotiating, Drafting, and Enforcing Noncompetition Agreements and Related Restrictive Covenants (5th ed., MCLE, Inc. 2015), used by other lawyers to help them with their noncompete matters
  • Drafting and advising on legislation for the Massachusetts Legislature to define, codify, and improve noncompetition law
  • Teaching Trade Secrets and Restrictive Covenants at Boston University School of Law
  • Founding and administrating the award-winning blog, Fair Competition Law
  • Establishing and administrating the Noncompete Lawyers and Trade Secret Protection groups on LinkedIn, with over 1,600 members around the world
  • Founded and chaired the Trade Secret / Noncompete Practice for an AmLaw 100 firm

In addition, Russell was honored for his work in this area of law in the 2019 Chambers USA Guide, which stated that Russell Beck is a “terrific” attorney, who “is an excellent choice of counsel regarding noncompete agreements and the resolution of restrictive covenant disputes.” Chambers noted that Russell “basically wrote the new Massachusetts statute on noncompetes” and that “he’s an expert in employee mobility and nonrestrictive covenants.”

Beck Reed Riden LLP is Boston’s innovative litigation boutique. Our lawyers have years of experience working with clients ranging from Fortune 500 companies to start-ups and individuals. We focus on business litigation and employment. We are experienced litigators and counselors, helping our clients as business partners to resolve issues and develop strategies that best meet our clients’ legal and business needs – before, during, and after litigation. We’re ready to roll up our sleeves and help you. Read more about us, the types of matters we handle, and what we can do for you here.

 

Phone Call to Employer to Enforce Noncompete Agreement Leads to Lawsuit

February 24, 2020
, , , News, Noncompete agreements

An employer accused of trying to have its former employee fired from her new job faces a lawsuit for defamation and tortious interference.

In Eaton v. Veterans Inc., Laurel Eaton filed suit in the United States District Court for the District of Massachusetts against her former employer, Veterans Inc. In her lawsuit, Ms. Eaton claimed that Veterans called her new employer and asserted that Ms. Eaton’s noncompete agreement with Veterans prevented her employment with the new company.  Ms. Eaton alleged that, during that phone call, Veterans threatened litigation to enforce the noncompete agreement (which Veterans never pursued), and demanded that the new employer fire Ms. Eaton – which it did. Based on these facts, Ms. Eaton claimed that Veterans defamed her and tortiously interfered with her new employment.

In response to Ms. Eaton’s complaint, Veterans moved to dismiss the tortious interference and defamation claims, arguing that its communications to Ms. Eaton’s new employer could not form the basis for liability because they were protected by the litigation privilege, which “extends to communications made preliminary to proposed judicial proceedings if judicial proceedings are contemplated in good faith and under serious consideration.”

On January 16, 2020, the court (Hillman, J.) denied Veterans’ motion to dismiss Ms. Eaton’s complaint. The court accepted as true (as it must at the motion to dismiss stage) Ms. Eaton’s allegations in her Amended Complaint that

(1) Defendant [Veterans] knew or should have known that it lacked any legitimate business reason to enforce the Non-Compete Agreement; (2) Defendant knew or should have known that the Non-Compete Agreement was unenforceable; (3) Defendant knew or should have known that its statements to [the new employer] regarding the enforceability of the Non-Compete Agreement were false; and (4) Defendant made these statements with the malicious intent of getting [Ms. Eaton] fired.

The court concluded that these allegations “create the reasonable inference that Defendant threatened legal action in bad faith and did not seriously consider initiating any judicial proceeding against Plaintiff or” the new employer. Accordingly, the court declined to determine at this early stage whether the litigation privilege applies to Veterans’ statements and denied the motion to dismiss.

The court’s decision highlights a risk of trying to enforce a noncompete agreement. The decision also serves as a reminder that efforts to enforce a noncompete must be tied to legitimate business interests, and that the litigation privilege is not necessarily an impenetrable shield. In light of this decision, practitioners and parties alike should keep in mind the value in analyzing the risks and rewards associated with whether to enforce a noncompete agreement, and how to go about pursuing enforcement.

eck Reed Riden LLP is among the leading authorities in trade secret, noncompete, and unfair competition law, and our experience handling these matters is backed by our extensive employment law and business litigation experience. Our hand-picked team combines attorneys with complementary expertise and practical experience.

The Wall Street Journal featured Beck Reed Riden LLP’s noncompete agreement experience. In 2016, the White House issued a report entitled, “Non-Compete Agreements: Analysis of the Usage, Potential Issues, and State Responses,” relying in part on Beck Reed Riden LLP’s research and analysis, including its 50 State Noncompete Survey.

Beck Reed Riden LLP is Boston’s innovative litigation boutique. Our lawyers have years of experience at large law firms, working with clients ranging from Fortune 500 companies to start-ups and individuals. We focus on business litigation and employment. We are experienced litigators and counselors, helping our clients as business partners to resolve issues and develop strategies that best meet our clients’ legal and business needs – before, during, and after litigation. We’re ready to roll up our sleeves and help you. Read more about us, the types of matters we handle, and what we can do for you here.

Russell Beck and Erika Hahn Featured in Law360 on Federal Noncompete Reform

December 26, 2019
, , , , , , News, Noncompete agreements, Trade Secret

Russell Beck and Erika Hahn‘s analysis of the misconceptions underlying various efforts to reform, and even ban, noncompete agreements was published by Law360 under the title, “Noncompete Misconceptions May Be Inhibiting Reform.”

The full analysis is also available (without subscription) at Fair Competition Law as “Federal Noncompete Initiatives: When you can’t convince the states, ask the feds.”

The analysis discusses recent efforts at the federal level to restrict or ban noncompetes, which follows on the heels of several years of legislative efforts across myriad states to modify noncompete laws. Although very few states have enacted laws that ban noncompete agreements outright, recently-filed federal legislation seeks to just that.

According to Russell and Erika’s analysis, much of the push for restrictions or a ban is premised on:

  • The mistaken assumption that Silicon Valley is the epicenter of tech because California bans noncompetes;
  • Recent preliminary, inconclusive and somewhat inconsistent studies, the nuances of which are ignored;
  • The mistaken belief that trade secret laws and nondisclosure agreements provide adequate protections for trade secrets;
  • The mistaken belief that noncompetes prevent employees from using their general skill and knowledge; and
  • The prevalence of abuses in the use and drafting of noncompetes.

As discussed in the article, Russell Beck submitted testimony to the United States Senate Committee on Small Business and Entrepreneurship hearing on “Noncompete Agreements and American Workers.”

In his testimony and in the article, Russell made the five following recommendations:

  1. Ban noncompetes for low-wage workers.

As a group, low-wage workers rarely have the level of exposure to trade secrets or depth and breadth of customer relationships that might warrant the enforcement of a noncompete, given the countervailing issues.

  1. Ban noncompetes for medical professionals.

The use of noncompetes for doctors, nurses and other health care providers has received substantial scrutiny in the past few years, with many states changing their noncompete laws to ban such agreements. Given the overwhelming public interest in patients having the ability to select who provides their medical care, exempting medical professionals is certainly a rational policy.

  1. Require employers to provide advance notice if they wish employees to sign a noncompete.

One of the other major criticisms of noncompetes is that they are often sprung on employees the day they show up to work. A simple way to eliminate that problem, while retaining the potential benefits of negotiated noncompetes . . ., is to require advance notice.

  1. Adopt the so-called purple pencil approach for overly broad noncompetes.

That approach is a hybrid of the reformation approach (where courts rewrite overly broad agreements) and the red pencil approach (where courts void an overly broad noncompete in its entirety). Specifically, it requires courts to void an overly broad noncompete unless the language reflects a good faith intent to draft a narrow restriction, in which case the court may reform it

  1. Expressly authorize springing noncompetes.

To the extent that one of the goals is to encourage companies to limit their use of noncompetes generally, employers must have a viable remedy for when employees violate other, less-restrictive, obligations such as nondisclosure agreements and nonsolicitation agreements, misappropriate trade secrets, or breach their fiduciary duties to the company. In Massachusetts, the new noncompete law expressly authorizes courts to do this, essentially by imposing a noncompete.

These recommendations were among those suggested by the Obama administration in its 2016 call to action on noncompetes and adopted by many of the states making changes to their laws in the past few years.

In July 2019, Law360 published Russell Beck’s analysis of misconceptions in the noncompete debate.

____

For up-to-the-minute analysis of legal issues concerning noncompete agreements in Massachusetts and across the United States, read Russell Beck’s blog, Fair Competition Law.

eck Reed Riden LLP is among the leading authorities in trade secret, noncompete, and unfair competition law, and our experience handling these matters is backed by our extensive employment law and business litigation experience. Our hand-picked team combines attorneys with complementary expertise and practical experience.

The Wall Street Journal featured Beck Reed Riden LLP’s noncompete agreement experience. In 2016, the White House issued a report entitled, “Non-Compete Agreements: Analysis of the Usage, Potential Issues, and State Responses,” relying in part on Beck Reed Riden LLP’s research and analysis, including its 50 State Noncompete Survey.

Russell Beck’s work in this area is well recognized, and includes:

  • Over twenty four years of working on trade secret, noncompete, and unfair competition matters
  • Assisting the Obama White House as part of a small working group to develop President Obama’s Noncompete Call to Action
  • Authoring the book Negotiating, Drafting, and Enforcing Noncompetition Agreements and Related Restrictive Covenants (5th ed., MCLE, Inc. 2015), used by other lawyers to help them with their noncompete matters
  • Drafting and advising on legislation for the Massachusetts Legislature to define, codify, and improve noncompetition law
  • Teaching Trade Secrets and Restrictive Covenants at Boston University School of Law
  • Founding and administrating the award-winning blog, Fair Competition Law
  • Establishing and administrating the Noncompete Lawyers and Trade Secret Protection groups on LinkedIn, with over 1,600 members around the world
  • Founded and chaired the Trade Secret / Noncompete Practice for an AmLaw 100 firm

In addition, Russell was honored for his work in this area of law in the 2019 Chambers USA Guide, which stated that Russell Beck is a “terrific” attorney, who “is an excellent choice of counsel regarding noncompete agreements and the resolution of restrictive covenant disputes.” Chambers noted that Russell “basically wrote the new Massachusetts statute on noncompetes” and that “he’s an expert in employee mobility and nonrestrictive covenants.”

Beck Reed Riden LLP is Boston’s innovative litigation boutique. Our lawyers have years of experience at large law firms, working with clients ranging from Fortune 500 companies to start-ups and individuals. We focus on business litigation and employment. We are experienced litigators and counselors, helping our clients as business partners to resolve issues and develop strategies that best meet our clients’ legal and business needs – before, during, and after litigation. We’re ready to roll up our sleeves and help you. Read more about us, the types of matters we handle, and what we can do for you here.

 

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