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The New FTC Rule Explained: Will Your Non-Compete Be Enforceable?
The FTC Issued a New Rule to Ban All New Noncompete Agreements
Back in April 2024, the Federal Trade Commission (FTC) issued a final rule that would have banned non-compete agreements nationwide as of September 4, 2024. (You can read our alert on the FTC’s final rule here.) However, on...more
Earlier this year, we wrote about the Federal Trade Commission (FTC) enacting a final rule to ban most all forms of non-compete agreements between employers and employees in the United States (available here). The ban was...more
On August 20, 2024, Judge Ada Brown of the Northern District of Texas issued her much anticipated order which officially set aside the FTC’s Final Rule Banning Non-Competes (the “Ban”), which we first brought to your...more
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
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
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
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
By a vote of 3-2, the Federal Trade Commission (FTC) passed the final version of its much-talked-about non-compete rule. The final rule hews closely to the proposed rule, effectively banning all existing or future non-compete...more
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
On April 23, the Federal Trade Commission (“FTC”) voted to issue a final rule banning non-compete clauses nationwide with limited exceptions (the “Final Rule”). The unpublished Final Rule is available...more
As expected, the Federal Trade Commission (FTC) voted 3-2 yesterday to issue its final noncompete rule, with only a few changes from the proposed rule that are discussed below. Unless it is enjoined, which we expect, the rule...more
The wait is over, but the fight is just beginning. Will U.S. employers need to break up with non-compete agreements forever? The Federal Trade Commission (FTC) voted “yes” earlier this week in pushing through a Final Rule...more
On April 23, 2024, the Federal Trade Commission (FTC) issued its long-awaited final rule, banning virtually all noncompetition agreements between employers and workers. Just as the ink dried, the first lawsuit (of several...more
On April 23, 2024, the Federal Trade Commission (FTC) issued a final rule that may affect for-profit employers’ use of post-employment non-competes in the employer/employee context. Whether this final rule becomes the law of...more
On April 23, 2024, the Federal Trade Commission (FTC) by a vote of 3-2 approved and issued its final rule that effectively bans employers’ use of all non-compete agreements (with very limited exceptions). The final rule is...more
It seems like a simple question: Is the covenant not to compete in my employment agreement enforceable? The answer is much more complex and uncertain than you might think....more
On March 29, 2024, Maine Governor Janet T. Mills vetoed a bill that would have banned all employee noncompete agreements in the State of Maine. Both chambers of the Maine legislature passed L.D. 1496, An Act to Prohibit...more
Last summer, the New York State legislature made waves when it passed a bill that effectively would have banned noncompete agreements. New York’s Governor vetoed that bill in late December 2023. This year, however, it is...more
Last year, the California legislature enacted AB 1075 (Bauer-Kahan) which declares it to be unlawful "to include a noncompete clause in an employment contract, or to require an employee to enter a noncompete agreement, that...more
Effective January 1, 2024, California made several adjustments to its non-competition laws to strengthen its general prohibition on such agreements. Those adjustments included: making non-competition agreements unenforceable...more
Many people are contemplating what to give their Valentine in a couple of weeks. However, California employers that employed California persons under an agreement with a noncompete clause “no matter how narrowly...more
On May 10, 2023, the UK government announced its intention to limit the duration of non-compete restrictions in employment contracts to three months. This was part of a package of measures announced to boost the productivity...more
The US is not the only country currently debating reform to the law on non-competes. Notably the UK Government has announced legislation which would limit the duration of non-competes to a period of 3 months after the...more
As we predicted when the New York legislature passed a bill that would ban noncompetes in the state without even an exception for the sale of a business, Governor Kathy Hochul has said that she wants changes to the bill –...more
Introduction - As we enter a new era of business landscape dynamics, Seyfarth Shaw is pleased to present the latest edition of our annual cornerstone publication. This comprehensive 50-State Non-Compete Desktop Reference,...more