We’ve been updating on developments involving the Federal Trade Commission’s (FTC) proposed rule banning nearly all employee non-competition agreements since it was first announced in January 2023 (see here), thereafter enjoined on a limited basis by a Texas federal court in July 2024 (see here), and then enjoined on a nationwide basis in August 2024 (see here and here). Although enjoined, litigation of over the rule continued, that is, until recently, when the FTC announced that it has abandoned the proposed rule. In doing so, however, the FTC clarified that it intends to continue to enforce unfair competition laws through investigation and enforcement activities. Our colleagues in SPB’s Antitrust group discuss in detail in the article linked below where we go from here.
Rule Abandoned, Crackdown Continues: The Federal Trade Commission’s New Non-compete Strategy