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Non-Compete Agreements › Final Rules › Labor Reform

Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a... more +
Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -
Ballard Spahr LLP

Texas District Court Preliminarily Enjoins FTC’s Non-Compete Ban for Named Plaintiffs

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As we previously reported, here, the Federal Trade Commission (FTC) issued a Final Rule on April 23, 2024 that would prevent most employers from enforcing non-compete agreements against workers, effective September 4, 2024...more

Bilzin Sumberg

The FTC Ban on Non-Competes

Bilzin Sumberg on

Final Rule Requires Notice to Workers of Unenforceability by September 4, 2024 - The Federal Trade Commission proposed a sweeping rule last year, outlawing most non-competition agreements nationwide. The rule drew...more

Epstein Becker & Green

Challenging the FTC’s Noncompete Rule: Amicus Brief Submitted on Behalf of 11 National Trade Organizations

Epstein Becker & Green on

As we have previously written, on April 23, 2024, the Federal Trade Commission (FTC) issued a sweeping final rule (“the Rule”) that purports to ban virtually all post-employment noncompete agreements in the United States. The...more

Farrell Fritz, P.C.

FTC Ban on Non-Competes: Throwing the Baby Out with the Bathwater

Farrell Fritz, P.C. on

Last month, the Federal Trade Commission voted 3-2 along party lines to impose a general ban on non-competes, claiming these arrangements stifle innovation, limit employee mobility and suppress wages. I blogged about the...more

Ballard Spahr LLP

FTC Webinar Provides Additional Guidance on Final Rule Banning Noncompete Agreements

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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

Bodman

Who is a “Senior Executive” Under the FTC’s Non-Compete Clause Rule? It’s More Narrow Than You Think.

Bodman on

The FTC’s non-compete ban is the topic of conversation for most in the HR world. As we all have heard, the FTC issued the Non-Compete Clause Rule (the “Rule”) which would ban nearly all non-compete provisions with limited...more

Nelson Mullins Riley & Scarborough LLP

FTC’s New Non-Compete Rule: FAQs for Employers

Nelson Mullins Riley & Scarborough LLP on

The below summary of frequently asked questions for employers concerning the Federal Trade Commission’s new rule governing non-competes (the “Rule”) is for general information purposes only. The below is not intended to and...more

Seyfarth Shaw LLP

Federal District Court To Rule on Plaintiffs’ Motion for Stay of FTC Non-Compete Ban and Preliminary Injunction Most Likely By...

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The district court in the Northern District of Texas recently set the briefing schedule on Plaintiff Ryan’s Motion to Stay the FTC Non-Compete Ban and Preliminary Injunction...more

Pullman & Comley - Labor, Employment and...

FTC Bans Noncompete Agreements for All Workers

Pullman & Comley - Labor, Employment and... on

On April 23, 2024, the Federal Trade Commission (the “FTC” or “Commission”) held an open meeting on noncompetition agreements, at which they voted 3-2 to approve a proposed final Noncompete Rule. The final Rule is a...more

FordHarrison

Noncompete News: Will New York City's Noncompete Ban Beat the FTC Final Rule to the Punch?

FordHarrison on

As we recently reported, the Federal Trade Commission (FTC) issued its long-awaited final rule on April 23, 2024, banning virtually all noncompetition agreements between employers and workers. Lawsuits challenging the final...more

Hinckley Allen

Federal Trade Commission Issues Final Rule Prohibiting Non-Compete Agreements (UPDATED)

Hinckley Allen on

In the article below we informed you that the Federal Trade Commission (“FTC”) approved and issued a final rule effectively banning non-compete agreements nationwide (“Final Rule”).  At the time, all we knew about the...more

Seyfarth Shaw LLP

Looking Past the Headlines, the Impact of the FTC’s Ban on Non-Competes in M&A, Private Equity and Venture Capital

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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

Carlton Fields

Court Direction on FTC’s Noncompete Ban Expected This Summer

Carlton Fields on

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

Perkins Coie

Washington State Tightens Noncompete Restrictions

Perkins Coie on

Washington state businesses that have noncompetition agreements with employees or independent contractors will be subject to new requirements under the latest amendment to the state’s noncompetition law beginning June 6,...more

Lerch, Early & Brewer

The FTC Bans Non-Competes – Now What?

Lerch, Early & Brewer on

On Tuesday, April 23, the Federal Trade Commission (FTC) issued a final rule, which would effectively ban most post-employment non-compete agreements.  ...more

Polsinelli

Lawsuits Filed Challenging the FTC’s Final Rule Banning Non-Competes

Polsinelli on

To date, three lawsuits have been filed challenging the legality of the FTC’s Final Rule banning non-competes. The initial two cases were filed in Texas federal court, which is widely viewed as a more hospitable forum for...more

Seyfarth Shaw LLP

Analysis of FTC Non-Compete Ban Legal Challenges: Does the Ban Pass Constitutional Muster? (And Other Issues)

Seyfarth Shaw LLP on

On April 23, 2024, the Federal Trade Commission (FTC) voted in a 3 to 2 decision along party lines to adopt its Final Non-Compete Clause Rule (“Noncompete Rule”) banning post-employment non-compete clauses between employers...more

Sheppard Mullin Richter & Hampton LLP

What the FTC’s Noncompete Ban Means for Healthcare

Sheppard Mullin Richter & Hampton LLP on

On April 23, 2024, the Federal Trade Commission (“FTC”) issued its Final Rule banning employers from imposing post-employment noncompete requirements on their workers (the “Final Rule”). The FTC has indicated that it will...more

Mayer Brown

The Federal Trade Commission’s Final Rule on Non-Competes: the Baby or the Bathwater?

Mayer Brown on

For decades, many courts and legislatures at the state and federal level have largely approved the use of non-compete covenants between employers and employees. The legality of a non-compete provision is routinely determined...more

Jones Day

FAQs About the FTC Final Rule Banning Worker Noncompete Agreements

Jones Day on

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

Seyfarth Shaw LLP

FTC Approves Nationwide Ban on Non-Competes

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The FTC approved a final rule to implement a nationwide ban on non-compete agreements between employers and their workers. The rule would supersede most state laws regarding noncompete provisions except where a state law...more

Polsinelli

FTC Final Rule Banning Most Non-Competes Passes – What You Need to Know

Polsinelli on

On April 23, 2024, the Federal Trade Commission (“FTC”) conducted a special Open Commission Meeting to vote on a Final Rule (the “Rule”) banning most non-compete clauses as an “unfair method of competition.” By a vote of 3-2,...more

Ballard Spahr LLP

FTC Votes to Ban Noncompete Agreements in Employment Contracts

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The Federal Trade Commission (FTC) voted to issue a final rule that would prevent most employers from enforcing noncompete agreements against workers, with only limited exceptions for existing noncompetes with senior...more

Quarles & Brady LLP

FTC Seeks to Ban Most Non-Compete Agreements

Quarles & Brady LLP on

On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 to issue a final rule that bans the use of non-compete agreements between employers and their “workers.”...more

Troutman Pepper

FTC Bans Employee Noncompete Clauses

Troutman Pepper on

The Federal Trade Commission (FTC) voted along party lines (3 to 2) to ban all worker noncompetition provisions. The final rule applies to all employees, including senior executives, and will become effective 120 days after...more

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