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What's the Tea in L&E? Alert: Non-Compete Agreements Largely Banned by New FTC Rule
As reported in Shumaker’s prior Client Alert, on April 23, 2024, the Federal Trade Commission (FTC) implemented a Final Rule banning nearly all non-competition agreements as of September 4, 2024. Under this Final Rule,...more
In prepared remarks for the Competitive Enterprise Institute’s Annual Summit delivered on May 31, 2024, Melissa Holyoak, a newly appointed Commissioner of the Federal Trade Commission (“FTC” or “Commission”), acknowledged the...more
On April 23, 2024, the Federal Trade Commission (the “FTC”) issued a rule banning most post-employment non-competition agreements (the “FTC Rule”). Since its promulgation, the FTC Rule has been subject to legal challenges....more
On April 29, 2024, a federal judge in the Southern District of Ohio dismissed a lawsuit brought by a group of physicians accusing the health-care provider Adena Health System of anticompetitive conduct, including through the...more
On April 23, the FTC issued its much-anticipated Final Rule banning worker non-competes. The Final Rule targets the Biden administration’s goal of reducing barriers to employee mobility....more
Effective Date: 120 days after the final rule is published in the Federal Register, likely in late August or early September 2024....more
On April 23, the Federal Trade Commission (FTC) voted 3-2 to approve a Final Rule (the Final Rule) that, if allowed to take effect, would ban nearly all non-competes with employees and other workers and substantially change...more
On April 23, 2024, the Federal Trade Commission (FTC) announced a final rule banning employers from enforcing non-compete agreements against any non-executive employee (“Non-Compete Clause Rule”). As suspected, business...more
On April 23, 2024, the Federal Trade Commission (FTC) issued a final rule adopting a comprehensive ban on non-competition agreements and clauses, which prevent workers from leaving for a competitor for a certain period of...more
On April 23, 2024, the FTC (Federal Trade Commission) voted 3-to-2 along party lines to approve a final rule (Rule) that prevents all for-profit employers nationwide from using non-compete agreements for any worker (whether...more
The Federal Trade Commission (FTC) adopted a controversial rule for noncompete provisions today. As expected, the final regulation, which was first proposed in January 2023, will prohibit virtually all noncompete...more
In a long-awaited and much-debated move, the Federal Trade Commission (FTC) voted Tuesday to ban nearly all non-competition agreements in the United States on the grounds they are an unfair method of competition. The vote...more
Corporates and deal teams should pay careful attention to drafting non-competes and other restrictive arrangements as UK, EU, and US regulators step up enforcement. Regulators on both sides of the Atlantic are placing...more
The short answer is no, not yet, but their future looks uncertain. In this update we have a look at developments affecting restrictive covenants across various jurisdictions around the globe and what multinational employers...more
There seems to be a lot of news these days involving non-compete agreements. Many companies are wondering whether their current non-competes are still enforceable, or if they should put a new one in place. ...more
On June 2, 2023, the Federal Trade Commission (FTC) announced that it finalized a consent order with Anchor Glass Container Corp. (“Anchor Glass”)....more
In January 2023, the United States Federal Trade Commission (FTC), a federal agency whose stated mission includes “protecting consumers and competition by preventing anticompetitive, deceptive, and unfair business practices,”...more
As previously reported by Verrill attorney Tawny Alvarez in the firm’s “Taking Care of HR Business” blog on January 5, 2023, the Federal Trade Commission (FTC) proposed a rule that, as drafted by the FTC, would both prohibit...more
On January 5, the Federal Trade Commission (FTC) promulgated a proposed rule that would effectively ban all non-competes with employees and other workers (Proposed Rule). If adopted in its current form, the Proposed Rule...more
In a Notice of Proposed Rulemaking issued January 5, 2023, the Federal Trade Commission (“FTC”) proposes prohibiting employers from entering into non-compete clauses with workers and requiring employers to rescind existing...more
On January 5, 2023, the Federal Trade Commission (FTC) proposed a rule that is essentially a blanket ban on non-competes per Section 5 of the FTC Act which prohibits unfair competition. If implemented, the new rule would not...more
Employing a tool it has not used before, the Federal Trade Commission (FTC) is proposing to crush employers’ right to enter into noncompetition agreements with employees. On January 5, 2023, the FTC proposed a rule banning...more
On January 5, 2023, the Federal Trade Commission (FTC) voted 3-1 to propose the Noncompete Clause Rule (the rule), which would ban essentially all noncompete clauses that employers impose on their employees and other workers....more
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