The ramp-up to legislatively limit noncompetes continues: there are currently 24 states with 65 noncompete bills so far this year, and 4 more are pending in Congress.
While we’ve all turned our attention to the FTC’s proposed rule to ban noncompetes, the clock has been running on the public comment periods for the proposed consent orders in the three noncompete enforcement actions announced by the FTC at the beginning of the year. Today, the FTC has publicly released the final order in one of them. The others should be coming soon. And, as we said before, this is likely just the beginning. Make sure that you are not engaging in behavior that is likely to elicit another.
The FTC extended the March 20 deadline for comments to it’s Notice of Proposed Rulemaking on noncompetes (the proposed rule to ban noncompete) to April 19.
U.S. Senators Warren and Whitehouse ask the U.S. Chamber of Commerce for information concerning the Chamber’s objection to the FTC’s authority for a proposed ban on noncompetes.
Members of the House Committee on the Judiciary, sent a letter to the FTC challenging the FTC’s authority to promulgate the proposed rule, and demanding that the FTC provide documents and information related to it. Read the details here.
The FTC’s public forum on its proposed rule banning noncompetes was today, and it was a doozy! Here is a summary.
The FTC’s public forum on its proposed rule banning noncompetes was today, and it was a doozy! Here is a summary.
Reminder: the FTC’s “public forum” on its proposed noncompete ban is today from noon to 3:00 PM ET. All the details you need are here.
Reminder: On February 16, 2023 (from noon to 3:00 PM ET), the FTC will be holding a “public forum” on its proposed noncompete ban. Don’t miss it. And, if you are interested in speaking at it, you will need to reserve a spot.
If you’re curious to see the text of the proposed federal noncompete bills, you can start with the Ensure Vaccine Mandates Eliminate Non-Competes Act, which is now available. And, Rhode Island proposed a total ban of all noncompetes.
In case you were wondering what states have changed their noncompete laws in the past decade or so, we have created a list with links to more information about each of the changes.
Our 50-state (plus DC) chart of noncompete laws has been updated and is available here.
Quick update: 19 states have 44 new noncompete bills, and Congress has 4. The ramp-up to legislatively limit noncompetes continues.
The FTC’s noncompete ban is mentioned in President Biden’s State of the Union. Not surprisingly, we’ve fact-checked it.
On February 16, 2023 (from noon to 3:00 PM ET), the FTC will be holding a “public forum” on its proposed noncompete ban. If you are interested in speaking at it, you will need to reserve a spot.
Eleven states plus Washington, D.C. have wage thresholds or other criteria that must be satisfied before a noncompete can be used. We now know that six have increased. Are your noncompetes still compliant?
Quick update: 18 states have 42 new noncompete bills, and Congress has 3. The ramp-up to legislatively limit noncompetes continues.
The day an employee shows up for their first day of work is often the day they learn that a noncompete is a requirement of the job. But, according to a 2015 study by Professors Evan Starr, J.J. Prescott, and Norm Bishara, providing advance notice that a noncompete will be required actually leads to 11% more training and 6.6% more job satisfaction. Eight states plus D.C. now have some requirements. Make sure you are complying.
Episode 21 of Fairly Competing is out! Join us in a discussion with Professor Evan Start about the research behind the FTC’s proposed noncompete ban.
The deadline to comment on FTC’s proposed rule to ban noncompetes may be extended to May 19. Make sure your voice is heard, whether joining us in our letter or separately.
The FTC’s proposed rule to ban noncompetes will publish in the federal register tomorrow. If you care, you have until March 20 (assuming no extensions) to make sure your voice is heard. You are welcome to join us in our letter.
Quick update: 13 states have 25 new noncompete bills. Two states propose total bans and four propose low-wage thresholds.
Our updated graph of noncompete, trade secret, and DTSA decisions is now available. Noncompete decisions remain level, while trade secret decisions continue to trend up.
Forty-seven state legislatures as well as Washington, D.C. – with the approval of Congress – have spent years honing their noncompete laws to fit their local communities and industries. In one fell swoop, three Commissioners at the FTC are proposing to undo all of it. With it, they will also eliminate the use of a broad swath of nondisclosure, nonsolicitation, no-service, no-recruit, and no-hire agreements. Companies have six things they need to do now.