Perkins Coie’s Post

Thanks to Law360 for publishing my article about the Federal Trade Commission's ban of non-competes and how employers and attorneys should prepare for it. #ftc #employmentlaw #executive #noncompete #employmentcontract https://lnkd.in/eY9YJqwV

FTC Issues Clumsy, Overbroad Noncompete Rule. Luckily, It Probably Will Fail. The Federal Trade Commission (FTC) issued a final rule which bans businesses from using most noncompete agreements against workers. The good news is that all signs point to the Rule being delayed and (hopefully) never implemented. Our Employment Attorneys Alicia Samolis, Sean M. Fontes, Morgan E. Hedly, and Michael Gamboli outline what you need to know in this Client Alert: https://ow.ly/CGNp50RubwK #EmploymentLaw #FTC #ClientAlert #pshlaw

FTC Issues Clumsy, Overbroad Noncompete Rule. Luckily, It Probably Will Fail. The Federal Trade Commission (FTC) issued a final rule which bans businesses from using most noncompete agreements against workers. The good news is that all signs point to the Rule being delayed and (hopefully) never implemented. Our Employment Attorneys Alicia Samolis, Sean M. Fontes, Morgan E. Hedly, and Michael Gamboli outline what you need to know in this Client Alert: https://ow.ly/etwp30sC57e #EmploymentLaw #FTC #ClientAlert #pshlaw

As my colleague Vincent Sallan writes, Judge Brown of the ND of Texas issued an order temporarily pausing the FTC’s ban on noncompetes. This is the first opinion to cite Loper Bright, which overturned Chevron and eliminated Cheveron deference. As I commented last week, the holding from Loper Bright will be instrumental in future challenges to agency actions. Interestingly, FTC Chair Lina Kahn published in 2020 an article called “The Case for "Unfair Methods of Competition" Rulemaking” in the University of Chicago Law Review. In this article, Chair Kahn argued the FTC Rulemaking authority could be used to regulate unfair competition as an extension of antitrust laws and Chevron was key to that authority. Without the deference Chevron afforded, the FTC’s argument becomes much harder. Was this result inevitable even with Chevron? Yes, likely so. However, I think the purpose of this exercise and Chair Kahn’s and the FTC’s push to ban non-competes was to force a national conversation amongst business leaders and employees. States are free to pass their own laws banning these agreements. So is Congress! I expect these efforts to continue in 2024 and in the years to come. #noncompete #employment #employmentlaw #FTC #FederalTradeCommission Clark Hill Law

The Federal Trade Commission (FTC) has approved a new rule that would effectively prohibit the enforcement of noncompete agreements across the United States, including in North Carolina. Because the rule is new, our Raleigh employment lawyers explain what you need to know: https://lnkd.in/eRD32m28 #NewBlogPost #RaleighLawyers #AttorneysInRaleigh #PersonalInjuryAttorneys #NonCompete #NewFTCRule

July 3, 2024-- A Dallas, Texas federal court Judge entered an injunction against the Federal Trade Commission from enforcing its 2024 rule that most non-compete agreements are unenforceable. The Judge found that the FTC lacks substantive rulemaking authority specify what are methods of "unfair competition". Litigation over the FTC's authority was anticipated. What are clients are also anticipating and experiencing is that employees an business partners, as well as courts, are scrutinizing non-compete and non-solicitation agreements. We are working with a number of these clients to review existing agreements for reasonableness and enforceability in this rapidly-evolving atmosphere. Restrictive covenants remain effective tools to protect project legitimate proprietary business interests. As the Texas Judge stated, "granting injunctive relief [to halt the FTC's non-compete ban] serves the public interest...." #noncompeteagreements #employmentlaw #restrictivecovenants

The U.S. District Court for the Northern District of Texas issued a preliminary injunction against the Federal Trade Commission's Final Rule banning most non-compete agreements. The stay currently applies only to the parties involved in the case and the FTC's rule is still set to go into effect unless further court decisions alter the timeline. Click the link below to learn more about the injunction and how the FTC Final Rule banning non-competes affects you and your business. https://lnkd.in/e56tU9-q This update was written by JAH partners Patrick E. Kelly & David E. Stevens #noncompete #ftc #employmentlaw #jahlaw

In late April, The Federal Trade Commission (FTC) banned non-compete agreements between employers and employees meant to protect proprietary information and company secrets from competitors, impacting 30 million Americans if the ban survives several court challenges. What should employers do now? What rights do they have? What does it mean for existing non-compete agreements? How can businesses protect their proprietary information? Dickie McCamey employment attorneys Kristy Wedell and Shaka Sadler discuss the impact of this FTC ruling. Watch our latest video podcast: https://lnkd.in/e5SkAZkt

Let's pump the breaks on all of the chatter. The USCOC's lawsuit and others that are likely to follow will cause a significant delay. Despite potential delays, this nationwide ban on non-competes reflects a broader trend toward limiting their use. Individuals who are subject to a restrictive covenant should continue to monitor the news or seek legal counsel. Employers should stay vigilant for state-level changes and continue to refine non-compete clauses to align with evolving regulations and local laws. #noncompete #employmentlawyers #monarchlawct #FTC #USCOC #lawsuits

This is a very important and long-awaited rule from FTC. If your business implements non-competes or if you are subject to a non-compete as an executive or otherwise, you should be aware of this update. Legal challenges are almost certain to result as various entities have vowed to enjoin this rule’s implementation, but the rule is final for now.