News & Analysis as of

Federal Trade Commission (FTC) Restrictive Covenants Employees

Epstein Becker & Green

NLRB General Counsel Calls for Crack Down and Harsh Remedies for Non-Competes and “Stay or Pay” Provisions

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National Labor Relations Board (“Board”) General Counsel Jennifer Abruzzo (“Abruzzo”) issued a General Counsel Memo (Memo GC 25-01) last week signaling that employers could face civil prosecution and significant monetary...more

Ballard Spahr LLP

ATS Withdraws Challenges to the FTC’s Final Non-Compete Rule After the Eastern District of Pennsylvania Denies its Motion to Stay...

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ATS Tree Services, LLC (“ATS”) has voluntarily dismissed the lawsuit it filed in April 2024 in the U.S. District Court for the Eastern District of Pennsylvania challenging the Federal Trade Commission’s (“FTC”) Non-Compete...more

Seyfarth Shaw LLP

Pennsylvania Plaintiff Drops Challenge to FTC Non-Compete Rule

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On October 4, 2024, Plaintiff ATS Tree Services, LLC (“ATS”) voluntarily dismissed its claims against the FTC challenging the agency’s Non-Compete Rule. See ATS Tree Services, LLC v. Fed. Trade Comm’n, et al., No....more

Carlton Fields

Court Enjoins FTC Noncompete Ban: Appeal Likely

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A federal judge in Texas has enjoined the Federal Trade Commission’s ban on noncompete agreements, leaving the FTC’s attempt to quash such agreements waiving in the breeze, at least for the time being....more

Seyfarth Shaw LLP

Noncompete Agreements – Employer Options and Strategies to Reduce Risks

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Seyfarth Synopsis: The federal district court for the Northern District of Texas has issued an order in the Ryan case staying the effective date on a nationwide basis the Federal Trade Commission (FTC) Rules banning...more

Ballard Spahr LLP

Next Steps for Employers After FTC Noncompete Rule Enjoined

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What’s next for employers who want to protect their businesses from competition from departing employees, including the loss of customers, employees, and confidential information? With a federal court injunction against the...more

Seyfarth Shaw LLP

The Saga’s Not Over – FTC Appeals Florida Court’s Stay of Non-Compete Rule

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Just over a month ago, employers throughout the United States breathed a sigh of relief after Judge Ada Brown in the Northern District of Texas issued a summary judgment ruling in the Ryan v. FTC litigation setting aside the...more

Troutman Pepper

States' Action Still Viable Despite Ban of FTC Noncompete Rule

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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

Cranfill Sumner LLP

Texas Court Strikes Down FTC’s Noncompete Ban Nationwide

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On August 20, 2024, United States District Judge Ada Brown (Northern District of Texas) issued an order that the Federal Trade Commission’s controversial noncompete ban “shall not be enforced or otherwise take effect on...more

Troutman Pepper

FTC Noncompete Rule Risks a Wave of State AG Actions

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On April 23, the FTC promulgated its final rule banning noncompetes nationwide. Originally published in Law360 - May 23, 2024....more

Quarles & Brady LLP

Texas Federal Judge Strikes Down FTC Non-Compete Ban

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Judge Ada Brown of the U.S. District Court for the Northern District of Texas on Tuesday struck down the Federal Trade Commission’s (FTC) pending ban on non-compete covenants, concluding that the issuance of the FTC’s Rule...more

Ballard Spahr LLP

Texas Federal Judge Strikes Down FTC Non-Compete Ban

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On August 20, 2024, Judge Ada Brown of the U.S. District Court for the Northern District of Texas vacated the Federal Trade Commission’s (FTC) final Rule that the FTC enacted to ban non-compete agreements. Judge Brown held...more

Troutman Pepper

Texas Court Issues National Injunction Barring Enforcement of the FTC’s Noncompete Ban

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In a complete victory for plaintiffs, a Texas court permanently enjoined the Federal Trade Commission’s (FTC) rule banning nearly all employee noncompetes. In the absence of the court’s decision, the rule had been scheduled...more

Seyfarth Shaw LLP

BREAKING: Federal Judge Rules FTC’s Non-Compete Ban to be Set Aside Nationwide

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This just in: Judge Ada Brown ruled yesterday on the parties’ dueling summary judgment motions – 10 days before her self-imposed deadline to do so – in Ryan LLC v. FTC. Judge Brown granted the plaintiffs’ motion for summary...more

Seyfarth Shaw LLP

More Bad News for the FTC: Federal Court in Florida Enjoins Enforcement of Non-Compete Ban

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Wednesday, a third court weighed in on the FTC’s proposed ban on non-competes, set to go into effect on September 4, 2024. Judge Corrigan of the United States District Court for the Middle District of Florida granted the...more

Troutman Pepper

Pennsylvania Court Denies Injunction Against FTC’s Noncompete Ban

Troutman Pepper on

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

Manatt, Phelps & Phillips, LLP

Who Qualifies As a ‘Senior Executive’ Under the FTC Noncompete Rule?

With the demise of the doctrine of Chevron deference at the U.S. Supreme Court in the Loper Bright Enterprises case, the future of the Federal Trade Commission’s broad rule banning noncompete agreements nationwide is...more

Epstein Becker & Green

Should Employers Continue to Enter into Noncompetes with New Hires or Other Employees?

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Part 2 of a Series on the Three Most Frequently Asked Questions Following the FTC’s Final Noncompete Rule - This is the second installment of our three-part blog series that is intended to respond to employers’ three most...more

Epstein Becker & Green

Three Most Asked Questions Following the FTC’s Final Noncompete Rule

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Part 1: How Should Employers Handle Current Noncompete Disputes with Departing Employees? This three-part blog series is intended to identify and respond to three of the most frequently posed questions by employers in...more

Skadden, Arps, Slate, Meagher & Flom LLP

FAQs About the FTC’s Broad New Ban on Noncompetes

When the Federal Trade Commission (FTC) issued its long-awaited final rule banning virtually all noncompete clauses between workers and employers, it also published 500-plus pages of commentary....more

Seyfarth Shaw LLP

The FTC’s “Good Faith” Exception to the Non-Compete Ban: Pending Legal Challenges Are Not a Basis for Non-Compliance

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The FTC’s recently issued Final Rule banning non-competes for most workers prohibits an employer from (1) threatening to enforce a non-compete against a worker, (2) advising the worker that, due to a non-compete, they should...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

Moritt Hock & Hamroff LLP

FTC Bans Non-Competes

On April 23, 2024, the Federal Trade Commission (“FTC”) adopted a Non-Compete Clause Rule (the “Rule”) that bans non-compete clauses between workers and employers as unfair methods of competition under Section 5 of the FTC...more

Shutts & Bowen LLP

FTC Issues Final Rule Banning Most Non-Compete Agreements

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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

Jenner & Block

FTC Votes to Effectively Ban Noncompete Agreements

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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

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