On January 5, 2023, the Federal Trade Commission (“FTC”) proposed an expansive new rule which would impose a near-complete ban on the use of noncompetes (the “Proposed Rule”) by employers. The Proposed Rule is the culmination of the FTC’s recent efforts, following President Biden’s July 9, 2021 Executive Order on promoting competition in the economy,
Biden Administration
FTC Enforcement Action Limits Noncompetition Agreements in “Sale of Business” Transactions
By Scott Tan, Daryl Leon, Joseph O’Keefe & Steven J. Pearlman on
On July 9, 2021, President Biden issued an Executive Order, in which he described the nation’s antitrust laws as the “first line of defense against the monopolization of the American economy” and encouraged the Federal Trade Commission (“FTC”) to “curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit…
FTC and DOJ Hold Workshop On Non-Compete Agreements
By Guy Brenner, Daryl Leon & E. Sydney Cone on
As we reported this past summer, President Biden signed an Executive Order titled “Promoting Competition in the American Economy.” At the time, President Biden urged the chair of the Federal Trade Commission (the “FTC”) to “curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility.” Since the…
DOL Rescinds Trump-Era Joint Employer Rule
By Heylee Bernstein & Allan Bloom on
The U.S. Department of Labor announced on July 29 that it will rescind the March 2020 rule on Joint Employer Status under the Fair Labor Standards Act (the “2020 Rule”). The DOL’s action removes the regulations established by the 2020 Rule and will become effective on September 28, 2021.
2020 Joint Employer Rule
The 2020…