The Federal Trade Commission (“FTC”) has appealed a ruling from a federal court in Texas that blocked its sweeping ban of noncompete agreements. As Benesch previously highlighted in August, a federal district court in Texas...more
Yesterday, a Texas Federal Court permanently blocked the Federal Trade Commission's attempt to ban noncompete agreements. In doing so, the Texas Court determined that the Rule exceeded the FTC’s authority and, as such, was an...more
The hot mess known as the FTC Rule to Ban Non-Competes (“Rule”) continues to get hotter and messier as two Federal District Courts issue conflicting opinions. This conflict between the Federal Courts will not be resolved...more
8/6/2024
/ Best Practices ,
Employment Contract ,
Federal Bans ,
Federal Trade Commission (FTC) ,
Final Rules ,
Non-Compete Agreements ,
Pending Legislation ,
Popular ,
Preliminary Injunctions ,
Restrictive Covenants ,
Unfair Competition
Last Wednesday, a federal court in Texas made a preliminary ruling that partially blocks the FTC’s rule that rendered most noncompetes in this country unenforceable (the “FTC Ban”). The FTC’s Ban was set to go into effect on...more
The future of non-competition agreements remains volatile. Recent actions by the FTC and several states threaten to limit, or even outright ban, these agreements. Such an evolving regulatory landscape requires employers to...more
Q: When will we know the Court’s Ruling on the FTC Non-Compete Ban? A: July 3rd.
...more
As we reported last week, the FTC voted to enact its Rule banning non-competes and the lawsuits quickly followed. Although three lawsuits have been filed so far, the lawsuit to watch is the United States Chamber of Commerce...more
The FTC has voted to enact its Rule to ban Non-Compete Agreements/Clauses. The vote to enact the Rule comes as no surprise but there were two noticeable changes to the Rule that was originally proposed and the Rule that the...more
4/24/2024
/ Competition ,
Confidential Information ,
Contract Terms ,
Corporate Executives ,
Employment Contract ,
Federal Trade Commission (FTC) ,
Independent Contractors ,
Non-Compete Agreements ,
Non-Solicitation Agreements ,
Notice Requirements ,
Restrictive Covenants ,
Unfair Competition
Non-competition agreements are currently in a volatile state, and the future of their enforceability has been called into question by the current administration, and several state legislatures enacting limitations (and in...more
As previously highlighted by Benesch, the Federal Trade Commission (“FTC”) kicked off 2023 by proposing an unprecedented, sweeping “crack-down” on non-competition agreements. The FTC's proposed rule (“Rule”) would ban...more
The Federal Trade Commission’s (“FTC”) threats of “cracking down” on non-competition agreements transformed into actual action with two dramatic moves this week. First, on January 4, the FTC ordered three companies,...more
The Federal Trade Commission’s (“FTC”) threats of “cracking down” on non-competition agreements transformed into actual action with two dramatic moves this week. First, on January 4, the FTC ordered three companies,...more
1/9/2023
/ Competition ,
Contract Terms ,
Employment Contract ,
Federal Trade Commission (FTC) ,
FTC Act ,
Non-Compete Agreements ,
Proposed Rules ,
Restrictive Covenants ,
Section 5 ,
Unenforceable Contract Terms ,
Unfair Competition
2021 saw significant activity by both the Department of Justice (“DOJ”) and Federal Trade Commission (“FTC”) in 2021. The DOJ, for example, finally followed through on its 2016 warning/threat to investigate and potentially...more
12/27/2021
/ Antitrust Investigations ,
Antitrust Violations ,
Biden Administration ,
Conspiracies ,
Criminal Conspiracy ,
Department of Justice (DOJ) ,
Employer Liability Issues ,
Employment Contract ,
Executive Orders ,
Federal Trade Commission (FTC) ,
Indictments ,
No-Poaching ,
Non-Compete Agreements ,
Restrictive Covenants ,
State Attorneys General ,
Technology Sector
2021 was an active year for trade secret and restrictive covenant law. 28 states introduced a total of 68 restrictive covenant bills, the United States Senate re-examined two prior restrictive covenant bills, and President...more
12/3/2021
/ Antitrust Division ,
Biden Administration ,
Employment Contract ,
Executive Orders ,
Federal Trade Commission (FTC) ,
New Legislation ,
Non-Compete Agreements ,
Non-Solicitation Agreements ,
Proposed Legislation ,
Restrictive Covenants ,
Trade Secrets