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Are the House and Senate Trying to Ban Your Noncompete Agreements?

March 1, 2023

The House and Senate have recently introduced a bill that would ban noncompete agreements.


The Federal Trade Commission (FTC) recently announced a proposal, which would eliminate noncompete agreements, except in limited situations.


The proposed Workforce Mobility Act of 2023, by the House and Senate, would disallow individuals and businesses entering, enforcing, or attempting to enforce noncompete agreements. The FTC’s proposal would apply to past, present, and future noncompete agreements, while the Workforce Mobility Act would only apply to those agreements entered after the bill is enacted.

The proposed bill provides three limited exceptions in which noncompete agreements would still be valid:

  • When the sale of goodwill or ownership interests in a business takes place, the buyer could include a noncompete provision in the contract to bar the seller from running a similar business in the same geographic area.
  • A buyer or seller of goodwill or ownership interests in a business could enter into a severance agreement with senior executives including a noncompete provision that applies for up to one year, only in the geographic region where the company previously operated. Such an agreement must provide for severance payments of at least one year’s salary or compensation if employment is terminated.
  • Noncompete provisions would be allowed for the purpose of stopping departing partners from running similar businesses in the same geographic area if the partnership is dissolved.


This bill would create a private form of action for the individuals against employers for violations of the bill. Recovery would encompass actual damages and attorney fees.


Moreover, state attorneys general could in fact bring claims against the employers as well for violations of the proposed bill.


This is an update from our January 11, 2023 post, titled The FTC Proposes Rule to Ban Noncompete Clauses for all US Workers. Click here to read that post!


If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.

Employer’s Counterclaims in Response to Suit Under Wage Act Dismissed Per Employee’s Anti-SLAPP Motion

January 15, 2025
An employer brought counterclaims of malicious prosecution and abuse-of-process in response to a Wage Act suit brought by an employee. The Appeals Court cited that the employer’s counterclaims should have been dismissed under the anti-SLAPP (Strategic Lawsuits Against Public Participation) law. Anti-SLAPP laws are meant to provide parties with a way to quickly dismiss meritless lawsuits filed against them, usually in response to a lawsuit. The plaintiff in this case, an hourly laborer, claimed that his employer violated the Wage Act by failing to pay him for four of the six weeks he worked for them. The employer refuted these allegations, stating that the employee had only worked for two weeks, that he had been paid in full and then brought counterclaims of malicious prosecution and abuse of process. The District Court judge denied the plaintiff’s motion to dismiss the counterclaims under the anti-SLAPP law. When brought to the Appeals Court, the decision was reversed; the Appeals Court stated that the defendants did not meet the burden of showing that plaintiff’s claims lacked an objectively reasonable factual basis. This ruling suggests that it might behoove an employer to pause and wait to see if a plaintiff’s Wage Act claim fails before filing a counterclaim of abuse of process or malicious prosecution in response.  If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.

Compensation Plans and Contingent Compensation Pitfalls

January 8, 2025
Attorney Trevor Brice hosted a seminar on Wednesday, January 8, 2025, discussing the possible issues with current compensation plans and contingent compensation pitfalls made possible by recent court rulings. Some of the topics discussed included: Issues with current compensation plans under the FLSA Restrictive Covenants and Compensation Plans Problems with Commission-Based Compensation Plans and Possible Solutions When a Bonus is not actually a bonus and issues under the Massachusetts Wage Act This seminar was perfect for H.R. professionals and anyone in a management position. Please feel free to contact any of the attorneys at The Royal Law Firm if you have any questions on this topic!
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