News & Analysis as of

Section 5 Employment Contract

Jackson Walker

The Non-Compete Conundrum: The Ban, The Backlash, And What’s Next

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In April of last year, the Federal Trade Commission (FTC) voted to implement its final rule prohibiting non-compete agreements in the workplace. The rule, as a practical matter, eliminated the patchwork of non-compete...more

Fisher Phillips

FTC Warns Healthcare Employers and Staffing Firms Over Noncompetes: 5 Takeaways + 5 Action Steps

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Healthcare employers and the staffing firms who serve them should take note: federal authorities recently announced they will specifically target the use of noncompetes and other restrictive covenants in the healthcare space....more

Husch Blackwell LLP

FTC Abandons 2024 Non-Compete Rule, Signals Priority in Non-Compete Enforcement Actions

Husch Blackwell LLP on

On September 5, 2025, the Federal Trade Commission (FTC) took steps to formally end its efforts to implement a nationwide ban on non-compete agreements, agreeing to vacate the Non-Compete Clause Rule and dismiss all pending...more

Hogan Lovells

FTC sets new course for enforcement of noncompete agreements

Hogan Lovells on

On September 5, the FTC ended the nearly 18-month legal purgatory for the agency’s Non-Compete Clause Rule, voting to withdraw its appeal of a Texas District Court’s decision setting aside the Rule, and accede to the Rule’s...more

A&O Shearman

District Courts Split On Federal Trade Commission’s Non-Compete Clause Rule

A&O Shearman on

On July 23, 2024, Judge Kelley Brisbon Hodge of the United States District Court for the Eastern District of Pennsylvania denied plaintiff’s motion for a preliminary injunction seeking to enjoin the Federal Trade Commission...more

Faegre Drinker Biddle & Reath LLP

Recent Decisions in Noncompete Cases Expose Deep Divides in Opposing Visions for Antitrust Enforcement

On July 3, 2024, plaintiffs in Ryan LLC v. Federal Trade Commission won their first significant victory in their noncompete case against the Federal Trade Commission (FTC) when Judge Ada Brown of the Northern District of...more

Troutman Pepper Locke

Pennsylvania Court Denies Injunction Against FTC’s Noncompete Ban

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In direct conflict with a recent Texas court ruling, on July 23, an Eastern District of Pennsylvania court denied ATS Tree Services’ motion for a preliminary injunction to stay the effective date of the Federal Trade...more

Goodwin

Federal Court Preliminarily Enjoins Enforcement of the FTC Non-Compete Rule, but Only for the Plaintiffs: What Are the...

Goodwin on

On April 23, 2024, the Federal Trade Commission (the “FTC”) issued a rule banning most post-employment non-competition agreements (the “FTC Rule”). Since its promulgation, the FTC Rule has been subject to legal challenges....more

Hogan Lovells

Texas Federal Court grants preliminary injunction blocking FTC rule banning non-compete agreements

Hogan Lovells on

On July 3, 2024, a Texas federal judge issued a preliminary injunction postponing the September 4, 2024 effective date of the Federal Trade Commission (FTC)’s final rule banning non-compete agreements (the Non-Compete Rule)...more

Seyfarth Shaw LLP

FTC Non-Compete Ban: What You Need to Know (UPDATED)

Seyfarth Shaw LLP on

On April 23, 2024, the FTC announced its Final Non-Compete Clause Rule (“Final Rule”), which bans post-employment non-compete clauses between employers and their workers. The Final Rule becomes effective 120 days after being...more

BakerHostetler

How FTC History Did Not Affect the FTC’s Approach to Non-Competes (but Should Have?): From the Nader Report to the Present

BakerHostetler on

On April 23, the FTC issued its much-anticipated Final Rule banning worker non-competes. The Final Rule targets the Biden administration’s goal of reducing barriers to employee mobility....more

Seyfarth Shaw LLP

Lawsuits Filed To Block FTC’s Non-Compete Ban

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At least three lawsuits have now been filed against the FTC to block implementation of its new rule to ban non-competes....more

Troutman Pepper Locke

Implications of the FTC’s Noncompete Ban on Financial Institutions

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There has been a great deal of press about the Federal Trade Commission’s (FTC) vote to ban employee non-competition provisions and policies. While the FTC describes the rule as a comprehensive ban, it acknowledges that the...more

Bradley Arant Boult Cummings LLP

FTC Moves to Strike Most Noncompetes: Considerations for Cannabis Companies

As Bradley previously reported, the Federal Trade Commission at the beginning of last year issued a notice of proposed rulemaking to effectively ban employee noncompete provisions as an unfair method of competition in...more

Jenner & Block

Client Alert: FTC Finalizes Near Total Ban of Noncompetes – How You Can Prepare Now

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FTC Votes in Favor of Issuing Final Rule. On April 23, 2024, the Federal Trade Commission (“FTC”) voted in favor of issuing its final rule which essentially bans all noncompetes going forward and invalidates most...more

McDermott Will & Schulte

FTC Issues Rule Banning Worker Noncompete Agreements

On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 along party lines to ban all new noncompete agreements nationwide and render existing noncompete agreements binding most workers unenforceable. The Final Rule,...more

McGuireWoods LLP

Questions Surround Federal Trade Commission’s Authority to Issue Non-Compete Clause Rule

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With the public comment period coming to a close, business groups and others have made statements and submitted public comments criticizing the Federal Trade Commission’s (FTC’s) proposed rule to ban non-compete clauses as an...more

Kelley Drye & Warren LLP

The Federal Trade Commission Enters the Noncompete Political Arena

The political battle around noncompetes just got a major boost from the Federal Trade Commission (FTC or Commission). In a bold new move, the Commission announced a historic new rule that would ban nearly all noncompetes...more

Goodwin

Antitrust and Competition Healthcare Quarterly Update Q4 2022

Goodwin on

The Impact of the FTC’s Proposed Sweeping Ban on Non-Competes - On January 5, 2023, the United States Federal Trade Commission (FTC) proposed a new rule (the Proposed Rule) that would define an employer’s use of...more

Fisher Phillips

Businesses Have About a Month Left to Submit Comments on the FTC’s Proposed Non-Compete Clause Rule

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Employers have about a month left if they want to submit a formal comment to the federal government about the proposal that would ban most noncompetition agreements and force you to rescind existing agreements – but should...more

Groom Law Group, Chartered

With Proposed Non-Compete Ban, the FTC Joins the Executive Compensation Regulatory Landscape

Employers are accustomed to following rules related to executive compensation from the DOL, IRS, and SEC.  It may be time to add a new acronym to the list – the Federal Trade Commission (“FTC”)....more

Bowditch & Dewey

Is the Sky Falling? The FTC’s Proposed Ban on Non-Compete Agreements

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The Federal Trade Commission (FTC) recently announced a proposed new rule that would have a seismic effect on employment relationships throughout the United States, by barring the future use of non-competition agreements and...more

Cooley LLP

Proposed FTC Rule Would Ban Most Noncompete Agreements

Cooley LLP on

On January 5, 2023, the Federal Trade Commission published a proposed rule that would categorically ban noncompete agreements between employers and a broad class of “workers,” including independent contractors and unpaid...more

Jackson Walker

Federal Trade Commission Announces New Proposed Ban on Non-Competes in the Workplace

Jackson Walker on

On January 5, 2023, the Federal Trade Commission (FTC) announced a proposed regulation that would prohibit non-compete agreements in the workplace. The proposed rule follows on the heels of a statement issued by the FTC in...more

Kelley Drye & Warren LLP

The FTC Proposes Ban on Non-Competes: The Implications for M&A Transactions

On January 5, 2023, the Federal Trade Commission (FTC) proposed a sweeping new rule which, if enacted in its draft form, would ban virtually all non-competition agreements (non-competes), including those already in effect....more

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