- March 30, 2023
- Podcasts
The FTC’s Proposed Ban on Non-Competes - What Does It Mean?
On January 5, 2023, the Federal Trade Commission (“FTC”) announced and released a notice of proposed rulemaking (NPRM) to prohibit employers from entering into non-competes with workers, including independent contractors. Although the proposed rule has not been finalized, let alone implemented, and its viability will likely be challenged through litigation, the FTC’s pronouncement has generated intense concern among employers over the future viability of their restrictive covenants, and has already led employees to question whether their existing or future restrictive covenants are enforceable.
Moreover, although the FTC’s pronouncement does not require any immediate action or change to current law at this time, there has been a continuing legislative trend at the state level restricting non-competes and greater scrutiny given to such provisions in the courts. Restrictive covenants are still enforceable, but careful consideration must be given to the language of such provisions to avoid running afoul of prohibited constraints delineated by the courts.
Listen to our podcast to learn about the FTC’s NPRM and its implications, what steps employers should take now, and what the existing standards are with regard to restrictive covenants and their enforceability.
Moreover, although the FTC’s pronouncement does not require any immediate action or change to current law at this time, there has been a continuing legislative trend at the state level restricting non-competes and greater scrutiny given to such provisions in the courts. Restrictive covenants are still enforceable, but careful consideration must be given to the language of such provisions to avoid running afoul of prohibited constraints delineated by the courts.
Listen to our podcast to learn about the FTC’s NPRM and its implications, what steps employers should take now, and what the existing standards are with regard to restrictive covenants and their enforceability.