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So Much for Goodbye: FTC Ban on Noncompetes Just Overturned
On May 7, 2024, the Federal Trade Commission (FTC) published a much-anticipated new rule that would have prohibited ALL new noncompetes with employees nationwide, and enforcement of almost all existing noncompetes beginning September 4, 2024. However, just yesterday, a federal district court in Texas held that the FTC lacked the authority to issue the rule and issued a nationwide injunction that now prevents the rule from going into effect. The agency has initially indicated it is weighing its options and may yet appeal the decision.
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April and May Showered Employers with Legal Developments Locally and Nationwide
May 30, 2024
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April and early May have been busy times for employment practitioners. From noncompete bans to agencies issuing new gender discrimination guidance, the spring “showers” of laws and regulations and court decisions discussed below will have employers “...
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Washington Expands Coverage of Its Noncompetition Statute to More Agreements
In 2019, Washington enacted a new statute limiting which employees can be covered by a post-employment noncompetition covenant, placing specific restrictions on such covenants. That statute explicitly excluded nonsolicitation covenants from coverage under the statute but defined nonsolicitation covenants ambiguously.
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California Employees Must Receive Notice of Noncompete Invalidity by February 14
Your normal Valentine’s Day to-do list may include a box of chocolates, card, or bottle of wine. This year, for employers with California employees subject to noncompete agreements, add one more task: notices of invalidity of noncompetition agreement...
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Susan Stahlfeld Discusses FTC’s New Rule on Noncompetes on ELA Podcast
In July 2021, President Biden issued an Executive Order which encouraged the Federal Trade Commission (FTC) to curtail the unfair use of noncompete clauses and other clauses that may unfairly limit worker mobility. The FTC recently proposed a new rul...
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Employer Update: FTC Proposes New Rule to Ban Employment Noncompetes
As it had been encouraged by President Biden after he took office, the Federal Trade Commission (FTC) today finally took steps to regulate employee noncompete agreements at the federal level. Our colleague, Brian Esler, provides a great overview of w...
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