The Federal Trade Commission (FTC) has issued a final rule banning noncompete clauses, a move expected to significantly impact employment practices and business formation. The FTC estimates that this rule will lead to a 2.7% annual increase in new business formation, resulting in more than 8,500 additional new businesses each year. This decision follows a recent ruling by an Administrative Law Judge (ALJ) striking down a noncompete agreement, which is now set for review by the National Labor Relations Board (NLRB). The Supreme Court has also mandated that the NLRB must provide greater evidence to obtain preliminary injunctions. Employers are now grappling with how to handle current noncompete disputes and whether to continue entering into such agreements with new hires or existing employees. This rule change has already sparked legal disputes, such as the one between two Las Vegas casino operators over executive poaching. Part 1 and Part 2 of the FTC's guidance address these concerns.
A new federal rule will ban noncompete clauses, which are at the heart of a legal dispute between two Las Vegas casino operators over executive poaching. What will Las Vegas Strip resorts do when noncompete agreements become illegal? https://t.co/RvpZC093uF
FAQs About the FTC’s Broad New Ban on Noncompetes https://t.co/thM5H06tkd
The FTC estimates that the final rule banning #noncompetes will lead to new business formation growing by 2.7% per year, resulting in more than 8,500 additional new businesses created each year. Learn more: https://t.co/uyHKiPihQg https://t.co/AvUDAVs94I
Three Most Asked Questions Following the FTC’s Final Noncompete Rule - Part 2: Should Employers Continue to Enter into Noncompetes with New Hires or Other Employees? https://t.co/NPQqKsuAxI #FTC #Noncompetes #Work @EpsteinBecker https://t.co/n4nqVpV9Tl
Supreme Court Says #NLRB Must Offer Greater Showing To Obtain Preliminary Injunction https://t.co/Sypc46RjUX #employmentlaw #labor @Smgg_Law https://t.co/5DUgUkDKuw
Three Most Asked Questions Following the FTC’s Final Noncompete Rule - Part 1: How Should Employers Handle Current Noncompete Disputes with Departing Employees? https://t.co/xESn75P1LC #FTC #Noncompetes #Work @hrposts https://t.co/NPNqsAQlIa
Three Most Asked Questions Following the FTC’s Final Noncompete Rule - Part 1: How Should Employers Handle Current Noncompete Disputes with Departing Employees? https://t.co/xESn75P1LC #FTC #Noncompetes #Work @EpsteinBecker https://t.co/NOq1t4ChHa
Compete All You Want: ALJ Strikes Down Non-Compete Agreement, Setting Up NLRB Review https://t.co/89IhTnCZh8 #noncompetes #NLRB #employmentlaw @MattBruenig https://t.co/D5qI3kybyQ