Hill Ward Henderson’s Post

Our authors unpack the Federal Trade Commission's #noncompete ban which, if it survives the significant legal challenges facing it, will halt all existing and future non-compete agreements with workers, with only narrow exceptions. #pillsburylaw

Today, the Federal Trade Commission issued a final rule that purports to effectively ban noncompete agreements nationwide. Read more here or reach out to me about the implications of the rule and what happens next.

The Federal Trade Commission is expected to meet today to approve a rule that would ban the use of noncompete agreements and require companies with existing noncompete agreements to scrap them and inform current and past employees that they will not be enforced. This rule will have wide-ranging impacts on many businesses, and will likely be challenged in the courts. Day Pitney LLP has a team of experienced business and employment lawyers who can help you protect your business and its trade secrets. https://lnkd.in/eyAZnuqa #employmentlaw #noncompete #tradesecrets #businesslaw

The new Federal Trade Commission #noncompete ban is a very big deal to employers, affecting their relationships with employees and #independentcontractors as well. Check out this alert from my colleagues Jesse Coleman, Robert Milligan, Michael Wexler, Kate Perrelli, Kevin Mahoney, Marcus Mintz, Daniel Hart, Dawn Mertineit, Marc Fosse, Gary Friedman, Suzanne (Suzie) Saxman, and Cary Burke for more details! #teamseyfarth #employmentlaw

The Federal Trade Commission just enacted a ban on new non-compete agreements that takes effect in 120 days. If you are an employee subject to one of these agreements, I would not get your hopes up. Economic liberty be damned! Given the judicial scrutiny this FTC ban will face in the courts over next couple months, the likelihood of this prohibition actually happening in the near future is slim to none. The main question for the courts will be whether a regulatory agency like the FTC has the jurisdiction (aka authority) to implement a ban on non-compete agreements OR should this issue be left for Congress to decide. Federal courts in different circuits throughout the U.S. will either issue injunctions halting the FTC’s ban or they will uphold the FTC’s ban causing a conflict which could push it’s fate to The Supreme Court of the United States to be the final arbiter. Based on the conservative makeup of the U.S. Supreme Court, a majority of justices will most likely find the FTC did not have specific rule making authority to enact this ban and defer to Congress’s law making authority. For many employees subject to non-compete agreements (est. 30M workers), the headline sounded great but it will probably take Congressional action to make the ban on these agreements a reality. #employment #employer #employee #noncompete #law #business DISCLAIMER: Please note this is an opinion piece and I am not providing legal advice. Please consult a lawyer for your legal questions on this matter.

In a case that “[m]illions of employers across the nation are watching,” the first judicial test of the U.S. Federal Trade Commission’s sweeping prohibition on noncompete agreements is set to take place in the Northern District of Texas.   Writing in Truth on the Market, Washington, D.C. partner Amir Tayrani says the court will have the opportunity to decide whether the FTC has the authority to impose on employers burdens such as “the need to prepare FTC-mandated notices to current and former employees subject to noncompetes, examine and update existing employment agreements, and evaluate alternative measures to shield sensitive competitive information from public disclosure … or whether, as has been the case for centuries, noncompete agreements will continue to be regulated primarily at the state level.”   #FTC #noncompete

#GTTampa Labor & Employment practice attorneys can assist you on this issue.

Thanks to Monica Torres for speaking with me yesterday about the FTC’s nationwide ban on non-compete agreements. Curious what this rule means, or what we may see next? You can read the story in the HuffPost https://lnkd.in/g2j9PN8Z

The Federal Trade Commission has voted to adopt a near-total ban on non-compete clauses, which would allow greater job mobility within industries. Get ahead of the game in understanding how this can impact your industry and workplace. Insperity and I are happy to be a resource to those looking to understand more about this change. #NonCompeteClauses #FederalTradeCommission #JobMobility https://lnkd.in/gueBA78s

On April 23, 2024, the Federal Trade Commission voted 3-to-2 to ban noncompete agreements for all workers, with a narrow exception for existing agreements with senior executives. This new rule is set to take effect in just 120 days. Jon Landesman and I discuss this unprecedented ruling in the attached article. We will diligently monitor the litigation surrounding this development and provide additional information and guidance as it unfolds. Feel free to share your thoughts on the ban below! #Noncompete #EmploymentLaw #LegalUpdates