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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
On April 23, the FTC promulgated its final rule banning noncompetes nationwide. Originally published in Law360 - May 23, 2024....more
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
On April 23, 2024, the Federal Trade Commission (“FTC”) issued its Final Rule prohibiting non-compete clauses in all agreements between employers and their workers. This controversial ban comes one year and six months after...more
The Federal Trade Commission (FTC) issued the long-awaited Non-Compete Final Rule that prohibits all new non-compete agreements and renders all existing non-competes unenforceable, except in limited circumstances. These...more
On April 23, 2034, the Federal Trade Commission (FTC) issued a final rule intended to ban the use and enforcement of most non-compete clauses signed by workers. The new rule is not in effect yet. It will become...more
On April 23, the Federal Trade Commission (FTC) issued a final rule banning non-compete agreements, subject to very narrow exceptions, after concluding that non-compete agreements are unfair methods of competition and violate...more
On April 23, 2024, the Federal Trade Commission (FTC), in a 3-2 vote, issued a final rule that bans noncompete clauses between workers and employers as “unfair method[s] of competition” under Section 5 of the FTC Act, subject...more
On January 9, 2024, shareholders in our Restrictive Covenant and Trade Secret Practice Group conducted a webinar covering “What Employers Need to Know About Non-Competes in 2024.” A recording of that webinar is available...more
Non-compete provisions are receiving a lukewarm reception by the authorities on both sides of the Atlantic at the moment. With plans to make changes in the UK being actively discussed, and at a federal level in the United...more
On January 5, 2023, the Federal Trade Commission (FTC) announced a proposed rule that, if enacted, would amount to a near-total ban on the use of non-compete agreements nationwide. If enacted as written, the FTC’s proposed...more
Employers are accustomed to following rules related to executive compensation from the DOL, IRS, and SEC. It may be time to add a new acronym to the list – the Federal Trade Commission (“FTC”)....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
Will employment non-competes soon be banned nationally? Perhaps, if the Federal Trade Commission gets its way. Last month, the FTC issued a Notice of Proposed Rulemaking (the “NPRM”) that would prohibit just about all...more
On January 5, 2023, the Federal Trade Commission (FTC) published a new proposed rule that would ban employers’ use of covenants not to compete. The rule comes in the wake of an Executive Order issued by the Biden...more
In early January, the Federal Trade Commission (FTC) announced a proposed rule that would ban the use of non-compete agreements by employers in the United States. The rule is a proposed, not final, rule and could face a...more
As we recently reported, on January 5, 2023, the Federal Trade Commission proposed a rule banning the use of non-compete covenants in nearly all circumstances. The FTC is seeking comments on the proposed rule until March 20,...more
Only three months after the introduction of a bill to the House of Representatives that, if passed, will ban non-compete agreements nationwide for non-exempt employees, on January 5, 2023, the Federal Trade Commission (“FTC”)...more
Only days into the new year, the Federal Trade Commission announced a controversial proposed rule that would potentially ban all non-compete agreements nationwide. While the proposed rule would not take effect until the end...more
The proposed rule would only permit non-competes as part of the sale of a business –and then only when the restricted individual owns at least 25% of the entity being sold. The proposed rule permits non-solicitation...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”) proposed a rule to ban most non-compete agreements (“non-competes”) for American workers. The text of the proposed rule is broad: provisions that prevent workers from...more
On January 5, the Federal Trade Commission (FTC or Commission), an agency charged with enforcing federal antitrust laws and protecting competition, proposed a new rule that would prohibit “employers” from imposing...more
On Jan. 5, the United States Federal Trade Commission (the “FTC”) proposed a new rule which acts as a complete ban—both prospectively and retroactively—on all non-competition agreements (“non-compete(s)”) (the “Proposed...more
The Federal Trade Commission (FTC) announced its proposal of a new rule on January 5, 2023, that would ban employers from imposing noncompete clauses on their workers and invalidate all existing noncompetes currently in...more