Welcome, readers, to a significant moment in non-compete law. On Tuesday, April 23rd, at 2 p.m. Eastern Time, the Federal Trade Commission (FTC) will convene for a special virtual meeting to address non-compete agreements and announce a final rule presumably banning most non-competes with workers. As anticipation mounts and stakeholders across industries await the outcome, Robert Milligan, editor of the blog and co-chair of our Trade Secrets, Computer Fraud, and Non-Compete practice, and Dawn Mertineit, co-editor of the blog and Trade Secrets/Non-Compete partner, will provide live coverage and analysis of this event.
Non-compete agreements have stirred debate, with arguments both for and against their use with workers. Proponents cite the protection of proprietary information and trade secrets and protection of company investment/infrastructure, while critics highlight concerns about employee mobility, fair competition, and wage growth. With the FTC preparing to weigh in with a final rule, the implications for businesses and workers are significant.
As the legal landscape evolves, it’s essential to stay informed. Join us as we explore the FTC’s expected final rule banning non-competes, offering insights into potential ramifications. Whether you’re a legal professional or simply interested in the intersection of law and business, this live blogging event promises timely updates and valuable perspectives.
We will specifically be looking to see how the proposed final rules addresses the following issues:
- Will the final rule be more narrow than the proposed rule issued in January 2023? Will it be limited to low wage workers? Will it exempt high wage earners and executives?
- Will the final rule expand the sale of a business exception (the initial rule proposed a 25% threshold for the exception to apply)?
- When will the rule go into effect and when will employers have to comply? Is the rule retroactive, as suggested by the FTC’s initial proposed rule?
- Are franchisees covered by the non-compete ban?
- Does the final rule adopt additional language to try to protect it from likely Constitutional challenge?
Mark your calendars and bookmark this page for live coverage from the FTC meeting. Together, let’s navigate the complexities of non-compete agreements and consider their impact on the future of work.
