News & Analysis as of

Employer Liability Issues Section 5

A&O Shearman

District Courts Split On Federal Trade Commission’s Non-Compete Clause Rule

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On July 23, 2024, Judge Kelley Brisbon Hodge of the United States District Court for the Eastern District of Pennsylvania denied plaintiff’s motion for a preliminary injunction seeking to enjoin the Federal Trade Commission...more

Faegre Drinker Biddle & Reath LLP

Recent Decisions in Noncompete Cases Expose Deep Divides in Opposing Visions for Antitrust Enforcement

On July 3, 2024, plaintiffs in Ryan LLC v. Federal Trade Commission won their first significant victory in their noncompete case against the Federal Trade Commission (FTC) when Judge Ada Brown of the Northern District of...more

Troutman Pepper

Pennsylvania Court Denies Injunction Against FTC’s Noncompete Ban

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In direct conflict with a recent Texas court ruling, on July 23, an Eastern District of Pennsylvania court denied ATS Tree Services’ motion for a preliminary injunction to stay the effective date of the Federal Trade...more

Hogan Lovells

Texas Federal Court grants preliminary injunction blocking FTC rule banning non-compete agreements

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On July 3, 2024, a Texas federal judge issued a preliminary injunction postponing the September 4, 2024 effective date of the Federal Trade Commission (FTC)’s final rule banning non-compete agreements (the Non-Compete Rule)...more

Seyfarth Shaw LLP

FTC Non-Compete Ban: What You Need to Know (UPDATED)

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On April 23, 2024, the FTC announced its Final Non-Compete Clause Rule (“Final Rule”), which bans post-employment non-compete clauses between employers and their workers. The Final Rule becomes effective 120 days after being...more

Troutman Pepper

Implications of the FTC’s Noncompete Ban on Financial Institutions

Troutman Pepper on

There has been a great deal of press about the Federal Trade Commission’s (FTC) vote to ban employee non-competition provisions and policies. While the FTC describes the rule as a comprehensive ban, it acknowledges that the...more

Bradley Arant Boult Cummings LLP

FTC Moves to Strike Most Noncompetes: Considerations for Cannabis Companies

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

Jenner & Block

Client Alert: FTC Finalizes Near Total Ban of Noncompetes – How You Can Prepare Now

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FTC Votes in Favor of Issuing Final Rule. On April 23, 2024, the Federal Trade Commission (“FTC”) voted in favor of issuing its final rule which essentially bans all noncompetes going forward and invalidates most...more

McDermott Will & Emery

FTC Issues Rule Banning Worker Noncompete Agreements

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On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 along party lines to ban all new noncompete agreements nationwide and render existing noncompete agreements binding most workers unenforceable. The Final Rule,...more

Bradley Arant Boult Cummings LLP

Noncompetes Gone! FTC Issues Final Rule Banning Noncompete Clauses Nationwide

On April 23, 2024, the Federal Trade Commission issued a broad Final Rule that effectively bans noncompete clauses nationwide. The FTC states that noncompete clauses are an unfair method of competition and violate Section 5...more

Parker Poe Adams & Bernstein LLP

FTC Again Signals Strong Focus on Independent Contractor Misclassification Actions

The Federal Trade Commission (FTC) continued its steady march toward broadening its enforcement over labor and employment conduct using antitrust laws in early February when Commissioner Alvaro Bedoya declared that the...more

Littler

Federal and State Authorities Bring Antitrust Enforcement to the Contingent Workforce Sector

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The U.S. Department of Justice (DOJ), Federal Trade Commission (FTC), and now state attorneys general, have set their sights on staffing companies in their evolving efforts to examine labor markets through an antitrust lens....more

Sheppard Mullin Richter & Hampton LLP

Non-Compete No More? FTC Proposes Broad Ban of Non-Compete Agreements

On January 5, 2023, the Federal Trade Commission (“FTC”) unveiled a proposed ruling that would essentially ban noncompete agreements across the country. This proposed ruling is based on a finding that noncompete agreements...more

Akin Gump Strauss Hauer & Feld LLP

Proposed Rule Attempts to Ban Non-Compete Clauses as Method of ‘Unfair Competition’ Under Section 5 of FTC Act

Key Points - In an unprecedented step, the Federal Trade Commission has proposed a categorical, nationwide ban on non-compete clauses between employers and employees (or independent contractors). According to the FTC’s...more

Quarles & Brady LLP

FTC Issues Proposed Rule Banning All Non-Compete Agreements

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On January 5, 2023, the Federal Trade Commission (FTC) proposed a new rule that would ban the use of non-compete agreements between employers and their workers and require businesses to rescind existing non-compete contracts....more

Robinson+Cole Manufacturing Law Blog

Covenants not to Compete: The End of an Era

On January 5, 2023, Federal Trade Commission (FTC) Chair Lina Khan announced a proposed federal regulation that, if enacted, would invalidate non-competes and similar restrictive covenants that are routinely used by companies...more

Stinson LLP

Employer Non-Compete Agreements Face Possible Ban by FTC

Stinson LLP on

The Federal Trade Commission (FTC) started off 2023 with a bang. On January 5, the FTC proposed a new rule that would effectively ban most non-compete agreements, making them an unfair and unlawful method of competition under...more

Robinson Bradshaw

FTC Proposes Ban on Non-Competition Agreements

Robinson Bradshaw on

On Jan. 5, 2023, the Federal Trade Commission released a proposal for a new rule that would effectively ban all non-competition clauses. The FTC is the government agency responsible for enforcing federal consumer protection...more

Robinson & Cole LLP

FTC Proposes Rule Prohibiting Employee Noncompete Agreements and Broadly-Worded Non-Disclosure Agreements

Robinson & Cole LLP on

On January 5, 2023, the Federal Trade Commission (FTC) proposed a new rule that would prohibit employers from imposing post-employment noncompete restrictions on their workers. The proposed rule, if adopted as drafted, would...more

Hogan Lovells

FTC proposes rule to ban nearly all employee non-compete agreements

Hogan Lovells on

On 5 January 2023, the Federal Trade Commission (FTC) released a Notice of Proposed Rulemaking (NPRM) for the Non-Compete Clause Rule. The proposed rule, if adopted, would effectively ban the use of non-competes with...more

Burr & Forman

Is It the End of Non-Compete Clauses? The Federal Trade Commission Proposes a Prohibition and Rescission of Non-Compete Clauses

Burr & Forman on

On January 5, 2023, the Federal Trade Commission announced a Notice of Proposed Rulemaking that would prohibit and rescind non-compete provisions in employment contracts. The public has 60 days to offer comment on the...more

Bilzin Sumberg

FTC Proposes Rule to Ban Non-Compete Clauses

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On Thursday, January 5, 2023, the Federal Trade Commission (“FTC”), which enforces antitrust law, proposed a rule that would prohibit employers from imposing non-compete clauses on workers. This proposed rule, which can be...more

Blank Rome LLP

FTC Proposes Broad Rule Banning Non-competes for Employees and Independent Contractors

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On January 5, 2023, the Federal Trade Commission (“FTC”) proposed a new rule banning non-compete agreements between an employer and a “worker,” which is broadly defined to encompass employees and independent contractors...more

Epstein Becker & Green

EPIC Files Complaint with FTC Regarding AI-Based Facial Scanning Software

As we have previously blogged, use of third-party digital hiring platforms to select job applicants using video interviews can present an array of potential legal issues. A recent Complaint filed with the Federal Trade...more

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