UPDATE: May 7, 2024: The Federal Trade Commission’s noncompete ban is set to take effect Sept. 4, according to the rule as published in the Federal Register Tuesday. The Federal Trade Commission voted 3-2 Tuesday to issue a final rule that would prohibit the enforcement of most noncompet...
On April 23, 2024, the Federal Trade Commission (FTC) issued aFinal Rulebanning non-compete clauses between workers and employers, deeming them “an unfair method of competition” in violation of Section 5 of the FTC Act (“Final Rule”). The Final Rule, which was scheduled to take effect...
Nevertheless, the Final Rule makes clear that it bans these other forms of restrictive covenants when they have the same functional effects as non-compete clauses.[12]The Final Rule provides that a non-disclosure clause operates as a non-compete, for example, “where they span such a large ...
Federal regulators on Tuesday enacted a nationwide ban on new noncompete agreements, which keep millions of Americans — from minimum-wage earners to CEOs — from switching jobs within their industries. The Federal Trade Commission on Tuesday afternoon voted 3-to-2 to approve the newrule, which ...
Additionally, the FTC projects healthcare costs to fall by $74-$194 billion over the next decade under the noncompete ban. The healthcare industry reacts to the noncompete ban The healthcare industry’s reaction to the FTC’s noncompete ban has been a mixed bag, depending on ...
news Jul 08, 20245 mins Employee ProtectionHR DirectorTechnology IndustryUnless there is congressional action, non-compete rules will now vary from state to state; IT workers are back to precisely where they were a few months ago. Credit: Konstantin L / Shutterstock In a highly-anticipated fede...
By voiding noncompete clauses, the Federal Trade Commission may open employment options for IT pros and push employers to reevaluate strategies for protecting intellectual property.
In a critical ruling for employers nationwide, a federal court has blocked the FTC’s proposed ban on noncompete agreements (the “Rule”), just two weeks before it was set to take effect. In Ryan LLC v. FTC, the court delivered a rebuke of the FTC...
The FTC Noncompete Rule quickly sparked multiple lawsuits to prevent it from taking effect, with the main argument being that the FTC does not have the authority to impose such an overarching rule. The first case filed against the FTC was in the United States District Court for the Northern ...
On August 20, 2024, a Texas federal court ruled that the Federal Trade Commission’s recently announced Non-Compete Rule, which was set to go into effect on September 4, 2024, is an unlawful agency action and prohibited its enforcement nationwide. More information on the FTC’s new rule ...