Perspectives on FTC Rule Purporting to Ban Employee Noncompete Agreements

On October 7, Jennifer Abruzzo, General Counsel for the National Labor Relations Board (NLRB), issued a memorandum reinforcing her stance that most post-employment noncompete agreements violate Section 7 of the National Labor Relations Act (NLRA).

On August 20, the US District Court for the Northern District of Texas held that the Federal Trade Commission’s (FTC) final rule banning noncompetes is unlawful and “set aside” the rule.

The Federal Trade Commission’s (FTC) Final Rule banning noncompete covenants for workers is likely to present particular challenges for employers in the health care industry.

On July 3, the US District Court for the Northern District of Texas issued a decision and order enjoining the Federal Trade Commission (FTC) from enforcing its final rule banning most noncompete agreements.

On April 23, the Federal Trade Commission (FTC) voted 3-2 to publish a final rule with sweeping effect, purporting to bar prospectively and invalidate retroactively most employee noncompete agreements.

Trade Secrets, Noncompetes & Employee Mobility Practice Co-Leader Linda M. Jackson was quoted on the trade secrets risks facing employers from large-scale employee movement and with the impending Federal Trade Commission rule banning most noncompetes.

On May 7, the Federal Trade Commission (FTC) published a Final Rule banning noncompete covenants for workers, including employees, independent contractors, and volunteers.

On April 30, the Federal Register announced that the Federal Trade Commission’s (FTC) Non-Compete Clause Rule is scheduled to be published on May 7. The Rule becomes effective 120 days after publication, resulting in an anticipated effective date of September 4, 2024.

With 2024 well underway, this article highlights some of the pressing legal issues impacting the long term care and senior housing industry this year, including trends affecting the industry and emerging issues industry participants likely will face throughout the rest of 2024 and beyond.

On April 23, the Federal Trade Commission (FTC) voted 3-2 to adopt a final rule purporting to ban most employee noncompetes.

Today, the Federal Trade Commission adopted a final rule purporting to ban noncompete covenants for workers nationwide, which will become effective 120 days after publication in the Federal Register, unless first enjoined in long-anticipated litigation to challenge the FTC’s attempted rulemaking.

On April 16, the Federal Trade Commission (FTC) announced that it will hold a special Open Commission Meeting on Tuesday, April 23 at 2:00 p.m. ET, for purposes of voting on its proposed final rule banning noncompete agreements.

On January 5, 2023, the Federal Trade Commission (FTC or Commission) issued a notice of proposed rulemaking that proposes to ban post-termination noncompetition covenants between employers and employees.

2023 was a pivotal year for the emerging companies, creating new categories of winners and losers across the board. Emerging companies incorporating artificial intelligence or that have clear line of sight to positive cash flows gained significant traction.

Download ArentFox Schiff’s Comprehensive Annual 2023 Trade Secrets End of Year Report.

2023 was a pivotal year for the beverage and food industry globally, creating new categories of winners and losers across the board. With a full year of operations largely relieved of pandemic-era restrictions, restaurant companies that survived the pandemic posted record numbers.

California has long had the most restrictive laws against employee noncompete agreements. Effective January 1, two new legislative bills, Senate Bill 699 and Assembly Bill 1076, tightened California’s restrictions even further.

New York’s potential ban of noncompetition agreements was curtailed by Governor Kathy Hochul. In June 2023, the state legislature passed a bill calling for a broad prohibition on noncompetes.

New York state is poised to enact a radical change to its employment laws: the elimination of all noncompetition agreements. A sweeping bill passed by the state Legislature in June 2023 now awaits signature from Governor Kathy Hochul, who is considering the measure. Although well-intentioned, this legislation is deeply misguided. The governor would be wise to reject it.

New York, a state with a GDP larger than most sovereign nations, is on the brink of a significant change to its employment landscape. It may soon join the four other states that have banned employee noncompete agreements.

Earlier this year, the Federal Trade Commission (FTC) proposed a rule that would, with limited exceptions, bar employers from using employee noncompete agreements and require rescission of existing noncompete agreements.

On May 30, 2023, Jennifer Abruzzo, General Counsel of the National Labor Relations Board (NLRB), published a controversial enforcement memorandum.

On May 16, 2023, the Minnesota legislature passed a bill banning noncompetition agreements. The bill is expected to be signed shortly by Governor Tim Walz. The ban is set to take effect on July 1, 2023, and is not retroactive.

On February 16, 2023, the Federal Trade Commission (FTC) held a public forum on its proposed rule that would, with limited exceptions, ban employers from using employee noncompete agreements and require rescission of existing noncompete agreements.

On January 5, 2023, the Federal Trade Commission (FTC) published a proposed rule that, with limited exceptions, would both ban post-termination non-compete covenants in employment agreements and require rescission of existing post-termination non-competes.