Employee non-competes
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The FTC Issued a New Rule to Ban All New Noncompete Agreements
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The Northern District of Texas’s nationwide ban on the Federal Trade Commission’s noncompete rule isn’t a complete bar to government enforcement. The rule sought to curb unfair methods of competition and would have voided...more
On April 23, the FTC promulgated its final rule banning noncompetes nationwide. Originally published in Law360 - May 23, 2024....more
On August 20, 2024, in Ryan LLC v. Federal Trade Commission, a district court in the Northern District of Texas held “unlawful and set[] aside” the Federal Trade Commission’s (FTC) Non-Compete Rule, 16 C.F.R. § 910.1–.6. That...more
Bottom line: As of Tuesday night, the FTC’s non-compete rule has been set aside, cannot be enforced, and will not become effective on September 4, 2024. As an update to our prior alert regarding the Federal Trade...more
On August 20, 2024, U.S. District Judge Ada Brown in Texas issued a final order in the pending case, Ryan v. FTC, holding that the Federal Trade Commission (FTC) exceeded its authority in issuing a ban on noncompete clauses....more
The Federal Trade Commission’s (FTC) ambitious attempt to implement a nationwide ban on non-compete agreements (with limited exceptions) has hit a significant legal roadblock. On August 20, 2024, U.S. District Judge Ada Brown...more
AT A GLANCE - Restrictive covenants are a common feature in an employment context, especially for senior employees with special trade connections or who have access to trade secrets....more
AT A GLANCE - Restrictive covenants are aimed at protecting the company’s economic interests for a short period of time after the termination of the employment relationship....more
AT A GLANCE - Employees in Germany are subject to statutory non-competition and non-solicitation obligations during an employment relationship. Similar statutory restrictions apply to directors and board members as long as...more
While the two federal actions in Texas challenging the FTC’s non-compete ban have garnered much of the attention to date, a challenge of the FTC’s rule brought by a small tree trimming business in Pennsylvania is now in the...more
As we previously reported, the Federal Trade Commission (FTC) voted to issue a final rule (the “Rule”) that would prevent most employers from enforcing noncompete agreements against workers, with only limited exceptions for...more
On April 23, 2024, the Federal Trade Commission, by a vote of 3-2, issued a Final Rule concerning unfair methods of competition and non-compete agreements. The Rule will become effective 120 days after its publication in the...more
On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 to issue a final rule that effectively bans most noncompete agreements in the United States. The FTC’s rule is scheduled to go into effect 120 days after it is...more
On May 7, 2024, the Federal Trade Commission (FTC) issued a Final Rule that renders invalid non-compete clauses in standard employment agreements. 16 C.F.R. § 910. Although some limited exceptions apply, this new regulation...more
Last week on April 23, 2024, the FTC adopted a final rule that would effectively ban non-compete agreements in the context of employment relationships when the rule becomes effective on September 4, 2024, absent a stay or...more
The U.S. District Court for the Eastern District of Texas has issued an aggressive scheduling order that “should allow prompt resolution of” one of the initial challenges to the FTC’s noncompete ban “with sufficient time,...more
Yesterday, the Federal Trade Commission (“FTC”) announced its long-anticipated final rule finding that the vast majority of non-compete agreements constitute unfair methods of competition, and are thus invalid. An estimated...more
This week, the Federal Trade Commission (“FTC”) voted 3-2 along party lines to finalize a rule that bans noncompete clauses in employment agreements as a per se illegal “unfair method of competition” (“UMC”) under Section 5...more
When is the FTC’s rule effective? The FTC’s non-compete ban is not in effect yet. It does not become effective until 120 days after the date of publication in the Federal Register of the final rule. The Federal Register is...more
As Bradley previously reported, the Federal Trade Commission at the beginning of last year issued a notice of proposed rulemaking to effectively ban employee noncompete provisions as an unfair method of competition in...more
On April 23, 2024, the Federal Trade Commission (FTC) announced it had approved its final rule that would effectively ban workplace non-compete agreements, with limited exceptions (the “Final Rule”). The effective date of the...more
On April 23, 2024, the Federal Trade Commission (“FTC”) issued its Final Rule prohibiting non-compete clauses in all agreements between employers and their workers. This controversial ban comes one year and six months after...more
The Federal Trade Commission (FTC) issued the long-awaited Non-Compete Final Rule that prohibits all new non-compete agreements and renders all existing non-competes unenforceable, except in limited circumstances. These...more
On April 23, 2034, the Federal Trade Commission (FTC) issued a final rule intended to ban the use and enforcement of most non-compete clauses signed by workers. The new rule is not in effect yet. It will become...more
On April 23, the Federal Trade Commission (FTC) issued a final rule banning non-compete agreements, subject to very narrow exceptions, after concluding that non-compete agreements are unfair methods of competition and violate...more