Protecting Employer Proprietary Information Following the FTC's Ban on Non-Compete Agreements
The Federal Trade Commission (FTC) on April 23, 2024 issued a rule banning future non-compete agreements with limited exceptions. The FTC rule bans virtually all non-compete agreements for employees and independent contractors. Pre-existing non-compete agreements with senior executives remain enforceable, but new non-competes with senior executives are not. Likewise, non-competes entered into pursuant to a sale of a business or person’s ownership stake in a business are exempt from the FTC rule. Pat Torre takes a look at the rule in this Stites & Harbison Client
You Have a Voice: The Supreme Court Rules Everyone Except for “Truly Peripheral Parties” May Participate in Chapter 11 Proceedings
Learning that a bankruptcy which may impact you has been filed can be disconcerting. Bankruptcy navigates a complicated statutory framework that strikes a delicate balance between a debtor’s interest in financial rehabilitation and the creditors’ interest in maximizing their recoveries. Compounding this complexity is §1109(b) of the Bankruptcy Code, which governs the rights of “parties in interest” to participate in Chapter 11 restructurings. But are you a party with a voice in the case? In Truck Insurance Exchange v. Kaiser Gypsum Co., Inc. et al., the Supreme Court has brought some clarity to this issue.
Checking in on the Status of the Fair Labor Standards Act Exempt Salary Threshold Increase
It is a little under two weeks until the July 1, 2024, effective date for the U.S. Department of Labor’s Final Rule (the “Final Rule”) raising the minimum salary level requirement for exempt white-collar employees to $43,888 annually. Now is the time to check in on the status of any legal challenges which might effect that deadline and employment attorney Shannon Hamilton takes a look at those challenges in this Stites & Harbison Client
Providers and Laboratories Beware of EKRA: A Not-So-New Tool for Health Care Fraud and Abuse Enforcement
In an effort to combat the ongoing opioid crisis, Congress passed in 2018 the Eliminating Kickbacks in Recovery Act (“EKRA”) imposing significant monetary penalties on anyone paying or receiving payment for referrals to a recovery home, clinical treatment facility, or laboratory. However, given its broad language, EKRA may reach organizations not involved with substance abuse treatment. Health care providers and laboratories, therefore, should be aware of EKRA and its implications on their practice. Health care attorney Shea Luna takes a look at EKRA in this Stites & Harbison Client Alert.
USPTO Updates Guidance Due to Federal Circuit’s Adoption of Same Obviousness Test for Utility and Design Patents
On May 21, 2024, the Federal Circuit issued an en banc decision in LKQ Corp. v. GM Global Technology Operations LLC, No. 2021-2348, eliminating the long-established test for proving design patents invalid for being obvious as "improperly rigid" in favor of a more flexible approach. In doing so, it decided the same test for utility patent obviousness applies to design patents. IP attorney Trevor Graves takes a look at the case in this Stites & Harbison Client Alert.
Who Owns TRAVIS KELCE?: An Example of the Legal Issues that Arise When Related Entities Apply for Similar Trademarks
The Lanham Act bars the registration of similar trademarks (or “marks”) that are likely to cause confusion with existing marks registered with the United States Patent and Trademark Office (“USPTO”). This concept of “likelihood of confusion” is a foundational principal of trademark law and one of the most beneficial aspects of acquiring a federal registration. IP attorney Donovan Gibbs takes a look at those benefits in this Stites & Harbison Client Alert.
Department of Labor and the Fair Labor Standards Act Exempt Salary Threshold Increase
On April 23, 2024, the U.S. Department of Labor (“DOL”) issued its final rule raising the exempt classification minimum salary threshold. The change is effective beginning July 1, 2024. In addition, the salary threshold for highly compensated employees will raise as well. Finally, the rule also sets automatic increases every three years starting in January 2027. The final rule raises the minimum salary threshold to $844 per week, up from $684 per week. The next increase to $1,128 per week would be on January 1, 2025. For highly compensated employees the minimum threshold increases to $132,964 on July 1, 2024, with the next salary increase to $151,164 becoming effective January 1, 2025. Employment attorney Shannon Hamilton takes a look at the rule in this Stites & Harbison Client Alert.
Governor Beshear Signs Measure to Begin Medical Cannabis Licensing Six Months Ahead of Schedule
On April 17, 2024, Governor Andy Beshear signed House Bill 829 (“HB 829”) into law amending aspects of the Commonwealth’s budding Medical Cannabis Program (“Program”). Among other provisions, HB 829 expedites the licensing process for medical cannabis businesses. Jennifer Cave takes a look at the bill in this Stites & Harbison Client Alert.