In April 2024, we wrote about the Federal Trade Commission’s (FTC) issuance of a “Final Rule” banning employee non-compete clauses, scheduled to take effect on September 4, 2024. Over the last few months, three federal courts have addressed whether a preliminary injunction should stay the rule’s effective date pending the conclusion of lawsuits
Earlier this month, we wrote about a Texas federal court’s issuance of a limited preliminary injunction staying the Federal Trade Commission’s (FTC) rule banning non-compete clauses for the plaintiffs in that case. Despite not issuing a preliminary nationwide ban, the Texas federal court stated it would render a final decision on August 30, 2024, before
We previously wrote about the Federal Trade Commission’s (FTC) issuance of a rule banning non-compete clauses in employment. The FTC’s issuance of its final rule banning non-compete clauses constituted an unprecedented intrusion into matters of state law, which governed non-compete clauses. Nevertheless, it appears now that the FTC’s non-compete ban is beginning to unravel.
Last
Two days ago, the Federal Trade Commission (FTC) issued its “Final Rule” banning non-compete clauses in employment. Until now, the FTC never officially declared that such clauses constituted an “unfair method of competition.” The Final Rule seeks to upend centuries of state law governing the use of non-compete clauses in employment, including state laws that
On December 22, 2023 Governor Kathy Hochul vetoed a bill that would have imposed a ban on non-compete clauses throughout the state of New York for all employees, regardless of earnings level. We wrote about the Senate and Assembly bills that were passed in June, here.
Continue Reading Governor Hochul Vetoes NYS Non-Compete Bill
On June 20, the New York State Assembly passed Bill A1278B which, together with New York State Senate’s passage of identical legislation, Bill 3100A[2] earlier this month, would render all non-compete agreements signed or modified after the effective date unlawful. All that stands in the way of these bills becoming law is Governor Kathy Hochul’s signature.
Continue Reading New York Set to Ban Non-Compete Clauses in Employment
Connecticut’s legislature has amended the state’s physician noncompete law to provide for additional restrictions on physician noncompete agreements. (Public Act No. 23-97). In addition, Connecticut has extended noncompete restrictions to advanced practice registered nurses (nurse practitioners) and physician assistants. Governor Lamont is expected to sign the amendment, but has not yet done so.