By Jesse M. Coleman and Katherine Perrelli
Commentary: The Court ruled on Wednesday, July 3, what most of the legal community already believed: that the FTC lacked the substantive rulemaking authority to issue a nationwide ban on non-competes between employers and workers. Nevertheless, the ruling itself is not likely one that anyone expected.
On the one hand, the Court
Continue Reading Preliminary Analysis on the Ryan Court’s Order Enjoining the FTC’s Ban on Non-Competes
By Jesse M. Coleman and Yumna Khan
Are nonprofit health care entities exempt from the Federal Trade Commission’s (FTC) Final Rule banning non-competes in worker agreements? The answer is not cut and dry. While the FTC’s authority generally stops at the doors of nonprofit entities, the FTC has warned in its Final Rule that it intends to vigorously enforce the
Continue Reading FTC Signals Its Intent To Pursue Nonprofit Health Care Entities With Its Non-Compete Ban Whenever Possible
By Jesse M. Coleman, Daniel P. Hart, and Eron Reid
On April 23, 2024, the Federal Trade Commission (FTC) voted in a 3 to 2 decision along party lines to adopt its Final Non-Compete Clause Rule (“Noncompete Rule”) banning post-employment non-compete clauses between employers and their workers. The Noncompete Rule is scheduled for publication in the Federal Register on
Continue Reading Analysis of FTC Non-Compete Ban Legal Challenges: Does the Ban Pass Constitutional Muster? (And Other Issues)
Seyfarth Synopsis: It should come as no surprise to readers of our blog that restrictive covenants are facing significant headwinds.
The last decade or so has seen significant limitations on such agreements—mainly non-competes, but also other restrictive covenants such as customer and employee non-solicits and even non-disclosure agreements. These limitations—or proposed limitations—have come in
Continue Reading Is Maine the Next Frontier in the Effort to Ban Non-Competes?
Seyfarth Synopsis: By any measure, the world has changed vastly since we issued our first Commercial Litigation Outlook in 2020. We are now on our fourth installment of providing insights and flagging trends for what to expect in the coming year, and 2024 promises to be one for the history books.
Notably, AI has taken the commentariat, if not actual
Continue Reading Now Available! 2024 Commercial Litigation Outlook
By Cathryn M. Johns and Brandon L. Bigelow
Seyfarth’s Future of Automotive Series
Seyfarth Synopsis: On January 18, 2024, the Federal Trade Commission (FTC) announced it was staying the effective date of its Combating Auto Retail Scams Trade Regulation Rule (the “CARS Rule”) pending resolution of an administrative challenge filed with the U.S. Court of Appeals for the Fifth
Continue Reading FTC Pumps Brakes on CARS Rule, At Least For Now
Brandon L. Bigelow and Sam Rowley
Seyfarth Synopsis: On January 22, 2024, the Federal Trade Commission (FTC) announced that the 2024 threshold for applying the size-of-parties test of the Hart-Scott-Rodino (HSR) Act will increase from $111.4 million to $119.5 million. Deals that exceed this $119.5 million threshold may need to be reported to the FTC and U.S. Department of
Continue Reading FTC Announces Hart-Scott-Rodino Act Thresholds and Filing Fees for 2024
Seyfarth Synopsis: For employees looking to leave somewhere greener for somewhere warmer, California may now be climbing to the top of their list. On September 1, 2023, Governor Newsom signed legislation that extends California’s restrictions on non-compete agreements to contracts signed out of state, effective January 1, 2024. Specifically, SB 699 provides that any contract that is void
Continue Reading Heads Carolina, Tails California – Expanded Non-Compete Prohibitions Cross State Lines
Seyfarth Synopsis: Last week, a joint statement was issued by four federal agencies expressing their apprehension regarding the use of AI for discriminatory or anticompetitive purposes and outlining their plans for regulation. This comes on the heels of Elon Musk requesting a “pause” in AI development and meeting with Senator Chuck Schumer to guide the statutory
Continue Reading Regulation of AI – the Path AheadBy Ashley K. Laken and Timothy F. Haley
Seyfarth Synopsis: On October 20, the DOJ and the FTC jointly issued their Antitrust Guidance for HR Professionals, stating that DOJ intends to pursue employers criminally for alleged wage fixing and no-poaching agreements.
On October 20, 2016, the DOJ and FTC jointly issued their “Antitrust Guidance for Human Resource Professionals.”
Continue Reading HR Professionals Take Note: DOJ and FTC Issue Guidance Regarding Antitrust Laws in the Employment Context