non-compete

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The legal and mainstream media is still abuzz following the Federal Trade Commission’s Jan. 5, 2023, Notice of Proposed Rulemaking that would ban all employee non-compete agreements nationwide. And earlier this month, a bipartisan Senate bill was introduced (the Workforce Mobility Act of 2023, sponsored by U.S. Senators Chris Murphy (D-Conn.) and Todd Young (R-Ind.)) that also would ban non-competes across the board (except, as in the FTC’s proposal, in connection with the sale of a business). But comments made by President Biden in his Feb. 7 State of the Union Address signal that a more measured approach focused on banning non-competes for low-wage workers may ultimately be what becomes law.…

Continue Reading Biden State of the Union signals measured approach on non-compete ban

On Jan. 5, 2023, the Federal Trade Commission (FTC) announced a slate of proposed rulemaking. Of interest to employers in particular is a proposed rule that would completely ban the use of non-competition or non-compete agreements, which prevent employees from working for a competitor or starting a competing business. Typically, these agreements often last months or years and are limited to a certain geographic scope. The FTC noted that it believes non-compete agreements often have the effect of lowering workers’ wages.…

Continue Reading FTC announces proposed rule prohibiting non-compete agreements

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 be webcast live. Among the topics that will be addressed by the speakers and panelists – which include mostly law professors, economists and policy analysts, and only one practicing attorney – are the economic effects of non-competes, the FTC’s authority to address non-competes and whether the FTC should initiate a rulemaking regarding non-competes. The FTC has released the following list of questions that will be addressed at the workshop, and on which the FTC is soliciting public comment through Feb. 10, 2020:…
Continue Reading FTC poised to consider regulation of non-competes

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…