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.
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.
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?
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.
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.
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.
Episode 20 of Fairly Competing is out! Join us to hear about the FTC’s recent proposed noncompete ban and enforcement actions and what to do about them.
Today, the FTC took the unprecedented step of proposing a rule that would essentially ban all employee noncompetes — and other agreements if they can be interpreted as a “de facto” noncompete.
Well, we now know what the FTC will do about companies using noncompetes: They are bringing enforcement actions against them. And, this is likely just the beginning.