Royal

Non-Compete Agreements Are in Jeopardy

April 26, 2024

On April 23, 2024, the Federal Trade Commission (“FTC”) issued a final rule banning non-competition agreements for all employees except for very narrow exceptions. The FTC’s Final Rule banning all non-competition agreements is effective 120 days after its publication in the Federal Register, which is expected in the next few days.



 As of the effective date, all non-competition agreements are banned, except for franchisor/franchisee relationships and for sales of a business between buyer and seller. The FTC’s Rule is retroactive, prohibiting certain non-competition agreements before the effective date of the Rule as well. Existing non-competition agreements can remain in effect as to senior executives, which are defined in the Rule as employees in “policy-making positions” making at least $151,164 annually. The FTC’s Final Rule is already being challenged through the court system and a challenge from the Chamber of Commerce will most likely follow suit. Therefore, if an employer has existing non-competition agreements, the employer may not need to rescind them just yet. Stay tuned for updates as these challenges take their due course. 

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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