Commercial Law

On January 5, 2023, the Federal Trade Commission (FTC) announced a proposed regulation that would completely prohibit non-competition agreements in the workplace.  A non-compete clause is a contractual term between an employer and worker that prevents the worker from seeking or accepting certain employment, or operating certain businesses, after the worker’s employment ends.  Previously, the FTC issued a statement in November 2022 in which it declared its intention to exercise authority under Section 5 of the FTC Act which would be in line with President Biden’s Executive Order from July 2021 urging the FTC to promulgate new rules governing non-competes.  If this were to happen, the consequences for both employers and employees would be significant.

With certain exceptions, the proposed rule would make it illegal to (1) enter into or attempt to enter into a noncompete with a worker, (2) maintain a noncompete with a worker, and (3) represent to a worker that the worker is subject to a noncompete agreement.
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When Governor Charlie Baker prohibited restaurants from letting customers eat or drink indoors and ordered the temporary closure of “non-essential” businesses via Order No. 13 on March 23, 2020, it was known that there would be extensive implications of that decision for many businesses.  Some businesses have shuttered completely while others have successfully launched profitable curbside or take out businesses.  One issue that was not addressed in March of 2020 was what are the rights and responsibilities for landlords and tenants of commercial leases.  It took nearly a year, but the first major decision surrounding the issue was made on February 8, 2021.
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On March 11, 2020, the World Health Organization declared the novel coronavirus (more commonly known as COVID-19) to be a pandemic.  For many Americans, this was their first experience with a disease that had a power to disrupt life on such a global scale.  Many of us had watched movies such as Contagion or Outbreak, and thought those we were scary, but unlikely, stories.  In the world of commercial and contract law, there is a term of art that is often thrown about but not very often utilized: force majeure.

A force majeure event involves an occurrence which is outside the reasonable control of a party and which prevents a party from performing his, her, or its obligations under an otherwise valid contract.
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