"Late last week, the Federal Trade Commission (FTC) announced that the agency was acceding to decisions by U.S. regional circuit courts vacating the agency's Biden Administration-era rule banning noncompete clauses from U.S. employment contracts and preventing their enforcement. While some lawmakers have decried the decision to end this rule, the FTC also issued a request for information (RFI) as the Trump Administration seeks to develop a case-by-case enforcement approach for cracking down on noncompete abuses."
"In April 2023, the FTC approved by a 3-2 vote its rule banning new noncompete clauses and preventing enforcement of such clauses against any employees except for senior executives. Although FTC Commissioners voting in favor of the ban publicly argued that noncompete agreements prevent labor mobility and are inherently unfair, business advocates like the U.S. Chamber of Commerce opposed the rule, pointing out such agreements protect vital procompetitive interests in R&D investments and workforce training."
The FTC acceded to regional circuit court decisions vacating the Biden-era rule that banned noncompete clauses and barred enforcement against employees. The agency dismissed appeals in the Fifth and Eleventh Circuits and issued a request for information to pursue a case-by-case enforcement strategy. The April 2023 rule had been approved 3-2 to ban new noncompetes except for senior executives. Supporters argued noncompetes reduce labor mobility; business groups said noncompetes protect R&D investments and workforce training. Federal district courts granted injunctive relief, and some lawmakers criticized the agency's decision to end the broad ban.
Read at IPWatchdog.com | Patents & Intellectual Property Law
Unable to calculate read time
Collection
[
|
...
]