Employer Law Report

Tag Archives: non-compete

FTC poised to consider regulation of non-competes

microphone at podiumFederal regulation of employee non-compete agreements will be the focus of a workshop hosted by the Federal Trade Commission (FTC) Thursday, Jan. 9, 2020, in Washington, DC. First announced by the FTC on Dec. 5, 2019, the purpose of the workshop is “to examine whether there is a sufficient legal basis and empirical economic support to promulgate a Commission Rule that would restrict the use of non-compete clauses in employer-employee employment contracts.”

The FTC has now released the agenda for the workshop, which is titled “Non-Compete Clauses in the Workplace: Examining Antitrust and Consumer Protection Issues” and will …

Tech companies can’t escape antitrust liability for agreeing not to solicit competitors’ employees

Sometimes, the worlds of antitrust law and employment law intersect. For example, as most businesses know, it is generally permissible under federal, state, and local law for employers to enter into non-recruitment or non-competition agreements with their employees that are reasonably tailored to prevent unfair competition. A non-recruitment agreement typically prohibits an employee from stealing co-workers for another company. Similarly, a non-competition agreement typically prohibits an employee from working for the employer’s competitor both during employment and for a reasonable period of time thereafter. What happens, however, when employers simply bypass these employee agreements and instead enter into agreements with …

LexBlog