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FTC Wastes No Time – Takes Enforcement Action While Proposing Nationwide Rule to Invalidate Noncompete Agreements

Articles

While most commentary and handwringing has focused on the Federal Trade Commission’s (“FTC”) Notice of Proposed Rulemaking released on January 5, 2023, many are unaware of the FTC actions taken the day before. On January 4, 2023, the FTC announced the successful launch of what it calls an enforcement “crackdown” against noncompete agreements by heralding forced settlements with three (3) different companies that made regular use of noncompete agreements with a broad range of employees, and not just with low-wage or low-skilled workers.[1] Each of the FTC Complaints alleged the “unfair use of noncompetes in violation of Section 5 of […]

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FTC’s Proposed Rule to Ban Noncompete Agreements – Initial Reactions

Articles

On January 5, 2023, the Federal Trade Commission (“FTC”) created a stir when it released a 218-page Notice of Proposed Rulemaking and a Proposed Rule that if implemented will prohibit the use of post-employment, noncompete provisions.  The Proposed Rule extends to all workers, whether paid or not, and would require employers to rescind existing noncompete agreements within 180 days of publication of the Final Rule.[1]  The FTC estimates that approximately 30 million workers are bound by a post-employment noncompete provision. Much has been said about the Proposed Rule, but these are several initial observations in advance of a webinar Gentry […]

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Your Client Has Been Named as a Defendant in a Civil Lawsuit Filed More Than a Year Ago: Now What?

Articles

We all have bad days and even bad weeks, but waiting over a year to serve a defendant in a civil lawsuit in Virginia is just too long—and the rules agree. Rule 3:5(e) of the Rules of the Supreme Court of Virginia (the “Rules”) states that “[n]o order, judgment, or decree will be entered against a defendant who was served with process more than one year after the institution of the action against that defendant unless the court finds as a fact that the plaintiff exercised due diligence to have timely service on that defendant.” When the Advisory Committee on […]

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Avoiding Pitfalls in Article 9 Financing Statements

Articles

A recent opinion by the United States Court of Appeals for the Eleventh Circuit highlights the importance of obtaining and including a borrower’s correct name in the Form UCC-1 to be filed in the Virginia State Corporation Commission and other jurisdictions with statutory provisions similar to that of Virginia. In the case of 1944 Beach Boulevard, LLC v. Live Oak Banking Company, 2022 U.S. App. LEXIS 27330, the Court found that the Uniform Commercial Code financing statements filed by Live Oak with the Florida Secretary of State was “seriously misleading” because Live Oak listing the Debtor’s Name as “1944 Beach […]

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Three Former In-House Counsel Join Gentry Locke as Partners

Articles

Three attorneys walk into a law firm… It’s not the start of some joke. It’s the beginning of big news for Gentry Locke, which recently welcomed three attorneys as partners whose vast experience in government and the corporate world will help clients navigate issues where the public and private sectors meet. Carlos L. Hopkins, the Virginia Secretary of Veterans and Defense Affairs under former Virginia governors Terry McAuliffe and Ralph Northam, and a legal counsel to McAuliffe; Noah P. Sullivan, also a former counsel to McAuliffe who previously worked in the Washington, D.C. office of Gibson, Dunn & Crutcher LLP; […]

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Preliminary Motions Practice in Administrative Appeals Under the Virginia Administrative Process Act

Articles

The Virginia Administrative Process Act (“VAPA”) and Part 2A of the Rules of the Supreme Court of Virginia govern judicial review of determinations by certain administrative agencies in Virginia. A party appealing an agency decision under the VAPA must operate within these parameters, and the Court’s review of an agency decision is limited. In this context, the party contesting the agency decision bears the burden to “designate and demonstrate an error of law subject to review by the court.” Va. Code § 2.2-4027. Under the VAPA, an “error of law” contemplates a decision that is not: (1) in accordance with […]

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Are You Ready to Raise Capital for Your Business? Take a Beat to Avoid Problems

Articles

Congratulations!  You’ve decided to start a business or to be an entrepreneur.  Or you’ve decided it is time to grow your business further.  Now, if you can just raise the capital to give your business a go… Perhaps you tapped into your savings or nest egg.  Maybe the business is generating enough revenue to get by.  But eventually, you may need outside funding – whether from friends and family or from other investors.  It could come in the form of debt or equity from private or institutional investors.  Today, let’s focus on raising capital. Beware!  Raising capital is fraught with […]

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PFAS is Coming: The Time to Prepare is Now

Articles

Per-and polyfluoroalkyl substances (collectively, “PFAS”) are a group of nearly 5,000 human-made chemicals that are resistant to heat, water and oil. Due to these “resistance” properties, since the 1940s, PFAS have been used in a broad spectrum of industrial applications and commercial products, including everyday household items and packaging. Some examples of PFAS usage include carpeting, waterproof clothing, upholstery, food paper wrappings, cookware, personal care products, fire-fighting foams, and metal plating. In the environment, PFAS rapidly move through groundwater. Thus, PFAS frequently are found in public and private water sources throughout the United States. Unfortunately, the same resistance to water, […]

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