FTC Section 5

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On April 24, 2024, Winstead’s Labor & Employment team reported that—after much anticipation— the FTC issued its final rule banning noncompete agreements nationwide. In our initial post, we noted that the final rule had yet to be published in the Federal Register but that its publication triggers the 120-day period before the rule becomes effective. The final rule was published in the Federal Register on May 8, 2024, and the FTC notes that its expected effective date is therefore September 4, 2024.Continue Reading The FTC’s Noncompete Ban is Published…What Now?

On January 5, 2023, the Federal Trade Commission proposed a new rule that bans noncompetition agreements between private employers and their employees nationwide. In its press release, the FTC sharply criticized noncompetes, saying that they suppress wages, limit innovation, and deter new businesses. Accordingly, the FTC believes noncompetes “constitute an unfair method of competition…