NLRB Targets Non-Compete and “Stay-or-Pay” Provisions
Although the FTC’s attempted nationwide ban on noncompetes was blocked by a Texas federal judge in August 2024, that decision has no impact on the NLRB enforcement of employee rights under the NLRA.
FTC Ban on Noncompetition Agreements Takes Effect
As we previously reported, the Federal Trade Commission (“FTC”) issued its final rule on April 23, 2024, banning noncompetition agreements and related provisions. The rule will take effect on September 4, 2024, 120 days after publication in the Federal Register. As of September 4th, employers who have employees under existing noncompete agreements and related provisions, […]
FTC Bans Noncompete Agreements
On April 23, the Federal Trade Commission (“FTC”) issued its final rule banning noncompete clauses in employment agreements. Barring a successful legal challenge (including lawsuits already filed in Texas courts), the rule will take effect 120 days after publication in the Federal Register. At that time, employers who have employees under existing noncompete agreements will […]
Employers Beware: Your Noncompete May Violate Federal Law
NLRB General Counsel: Most Noncompete Agreements Violate the NLRA Many employers require employees to sign noncompete agreements before, during, or upon separation from employment in an effort to prevent direct competition and protect business interests. This long-standing practice faces increasing resistance from state legislatures, as well as federal agencies like the Federal Trade Commission. The […]
