Rivkin Radler LLP’s Post

The Federal Trade Commission (FTC) has issued a final rule banning non-compete agreements between employers and their workers, following President Biden's executive order in July 2021. The rule, effective 120 days after publication, is similar to the initial proposal but with a narrow exception for sale-of-business. The rule will be challenged and will test the FTC's rulemaking authority, causing legal challenges for employers and the business community. #FTC #emplaw #laborlaw #noncompete

In January of this year, the Federal Trade Commission (“FTC”) announced a Proposed Rule to ban employers from using non-compete agreements with their employees. The Proposed Rule, however, has not actually become law yet. Given the volume of comments the FTC received regarding the Proposed Rule, the FTC is not expected to vote on the final version of the Proposed Rule until April 2024. If the Proposed Rule does become law, there are significant impacts and implications for how employers interact and contract with their employees. Check out our Civil Group's latest blog post for more information about the effects of the Proposed Rule. https://lnkd.in/gQR_E_fN

The Federal Trade Commission (FTC) has issued a final rule banning non-compete agreements between employers and their workers, following President Biden's executive order in July 2021. The rule, effective 120 days after publication, is similar to the initial proposal but with a narrow exception for sale-of-business. The rule will be challenged and will test the FTC's rulemaking authority, causing legal challenges for employers and the business community. #FTC #emplaw #laborlaw #noncompete

On Tuesday, April 23, the FTC announced its Final Non-Compete Clause Rule, which bans post-employment non-compete clauses between employers and their workers. This groundbreaking regulation, set to take effect 120 days after being published in the Federal Register, bans post-employment non-compete clauses between employers and their workers. Here's what you need to know about the ruling in Seyfarth Shaw LLP's most recent Trading Secrets blog post. #FTC #NonCompete #BusinessRegulation #SeyfarthLegal

🚨 Breaking News: The FTC Bans Noncompete Clauses! 🚨 In a landmark decision, the Federal Trade Commission has ruled to ban noncompete agreements that restrict employees from switching jobs within the same industry. This transformative move is set to empower millions of American workers, promoting career mobility and boosting economic fairness. 🔍 Why This Matters: The ruling aims to enhance market competition and increase wages by making it easier for employees to move between companies without legal constraints. This could reshape hiring landscapes across various sectors and potentially lead to significant shifts in how businesses attract and retain talent. 💡 For Businesses: It’s time to revisit your employment and retention strategies. Innovate your approach to talent management and focus on building a more dynamic and attractive workplace culture that naturally encourages loyalty without contractual bindings. 📈 For Professionals: This is your moment! Explore new opportunities and push for the career growth you deserve. The sky's the limit regarding where your expertise might be valued next. How do you think this change will impact your industry? What strategies should businesses adopt in response to this new rule? Let’s discuss! What are your thoughts on the FTC’s decision? #CareerMobility #FTC #Noncompete #JobMarket #ProfessionalGrowth #BusinessStrategy #EconomicFairness #InnovationInHR

The Federal Trade Commission (FTC) has issued a final rule banning non-compete agreements between employers and their workers, following President Biden's executive order in July 2021. The rule, effective 120 days after publication, is similar to the initial proposal but with a narrow exception for sale-of-business. The rule will be challenged and will test the FTC's rulemaking authority, causing legal challenges for employers and the business community. #FTC #emplaw #laborlaw #noncompete

FTC's Non-Compete Ban: Big news for employers and employees On April 23rd, the Federal Trade Commission (FTC) issued a final rule prohibiting employers from enforcing non-compete agreements with most workers. The FTC considers non-competes to be unfair methods of competition under Section 5 of the FTC Act. What's banned: 1. All new post-employment non-compete agreements with employees in the United States. 2 Existing non-competes with employees other than senior executives will no longer be enforceable after the effective date of the rule (which is 120 days after publication in the Federal Register). Important exceptions: 1. Non-disclosure agreements (NDAs) and non-solicitation agreements are still enforceable to protect confidential business information and prevent soliciting clients or employees. 2. Existing non-compete agreements with senior executives (defined as those earning more than $151,164 annually and in a policy-making position) may still be enforceable. Legal challenges are likely, and the final word rests with the courts. However, businesses should be prepared to consider alternative strategies to protect their interests, such as: 1. Strong NDAs and non-solicitation agreements. 2. Trade secret protections. 3. Restrictive stock units (RSUs) or other forms of equity compensation tied to continued employment (Loyalty agreements) Stay tuned for further developments! #FTC #NonCompeteBan #EmploymentLaw #BusinessLaw

In light of the FTC’s Final Rule banning non-competition agreements, employers must be proactive. The rule, effective from September 4, 2024, prohibits new non-competes with workers and senior executives, necessitating employers to notify workers of any existing non-compete clauses’ invalidity. Read more to learn what to do next:

The FTC bans new post-termination non-compete clauses! Effective 120 days after publication in the Federal Register, this rule impacts all workers except for senior executives in certain scenarios. Existing non-competes remain unless employers notify otherwise. Despite this, the rule faces legal challenges and potential delays. Check out this post by my colleagues for a full understanding of what this means for you. #EmploymentLaw #FTC #NonCompete #BusinessNews #LegalUpdate #Freshfields #antitrust

📣 Big news out of the FTC came on April 23, with a 3-2 vote to approve a Final Rule that could potentially ban almost all non-competes between employers and workers. This move could dramatically alter how employers and investors use restrictive covenants, impacting numerous areas such as compensation, trade secret protection, and deal dynamics. Read Katten's Q&A on the Final Rule for a look at the most significant and practically relevant aspects of this development and gain insights on what the next steps might be. ⬇️ #FTC #FinalRule #NonCompete #EmploymentLaw