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On April 23, 2024, the Federal Trade Commission (FTC) voted to ban most non-compete agreements as an unfair method of competition. If implemented, the rule will require most businesses to stop using non-compete terms and policies going forward. For now, no affirmative action is needed: there is a 120-day pre-implementation period after publication in the Federal Register, which is scheduled for May 7, 2024, plaintiffs have already sued to stop the rule, and implementation of the rule will likely be enjoined before it goes into effect. For more information, including the rule’s impact on employee contracts and the steps businesses should take, read our recent client alert “FTC Non-Competes Ban: Take No Action Yet, But Do Get Ready,” authored by partners Lee Berger, John Kavanagh, and Michael Weiner, and associates Weisiyu Jiang, Andrew Magloughlin, and Travis West.

Everyone is talking about the FTC's recent announcement regarding noncompete agreements. If you aren't, you should be! Reach out with any questions or consider attending our upcoming seminar on the topic. Registration below. #ftc #noncompete #laborlaw #restrictivecovenants

This is a major decision by the FTC. California banned non-compete agreements a long time ago and many attribute this as a factor in the emergence of Silicon Valley #competition #noncompetes 👉 The Federal Trade Commission has banned almost all non-compete agreements, which could restructure the balance of power between businesses and workers. 👉 The move makes it easier for US workers to leave their existing jobs to work for a competing company or start their own. 👉 The rule applies to employees and independent contractors across industries, with few exceptions. 👉 Some banks, specific nonprofits such as healthcare providers, and stockyards will not have to comply. 👉 Companies argue that it will become more challenging for them to protect trade secrets and confidential information, and legal challenges are underway to decide whether the change will be allowed to take effect.

The FTC recently announced they'll be issuing a ban on non-compete agreements, but what could this mean in terms of intellectual property? This Forbes article highlights the complexities involved in balancing the protection of intellectual property with the rights of employees to pursue new opportunities, including the potential impacts of such bans on innovation, entrepreneurship, and economic growth: https://bit.ly/4aWW0J1 If you have any queries around intellectual property and the new non-compete ban, please reach out to Walter for advice: https://bit.ly/3GPE1WW #IntellectualProperty #NonCompete #Innovation

What does the FTC’s announcement of a final rule — which bans virtually all preexisting and future noncompete agreements — mean for your organization? Join employment attorneys Glenn Grindlinger and Steven Ludwig for a one-hour webinar breaking down key considerations, including:   ✅ Status of the rule, effective date and court challenges ✅ Who is covered — employees, contractors, volunteers, etc.? ✅ What is banned versus permitted? ✅ How does the rule impact current contracts that contain noncompetes? ✅ Health care issues and exemptions for nonprofits ✅ Noncompetes in a sale or purchase of a business ✅ Alternate employer protections: nonsolicitation and confidentiality clauses ✅ What should employers do now? The program also will discuss state-specific issues and developments, including state laws that prohibit noncompetes. Reserve your spot today: https://bit.ly/3wcqU0O #noncompeteban #noncompeteruling #employmentagreements

Here's a great summary of yesterday's FTC action on non-competes, prepared by some of my partners here at Taft.

On Tuesday, April 23, the #FTC voted, in a 3-2 decision along party lines, to approve a final rule to promote competition by banning #noncompete agreements nationwide. What does that mean for your business? Read more about this important legal update in our latest article by attorneys Adam Russ and Gerald Waltman III.

While many states, including California, already banned noncompetes, the FTC’s decision to ban noncompetes nationally is going to have huge ramifications on the potential flow of trade secrets and confidential materials between companies. Too offen companies are focused on patents when the trade secrets are as valuable, if not more valuable. It will be interesting to see how the unfettered flow of employees within sectors impacts the flow of IP between companies that can no longer restrict when and where their employees go next.

The FTC just voted to ban non-competes in nearly all cases, nationwide. There will obviously be a lot of legal challenges to this rule, but I hope they fail and that the ban takes effect. I believe that non-compete agreements are immoral in nature. For those advisory firms who have non-compete agreements in place, know that there are better and fairer ways to protect your business. I’m happy to brainstorm them with you to help you find a fair and equitable way to balance business protection, your fiduciary duty to your clients, and your culture. https://lnkd.in/grBbHjPY