US FTC invites other enforcers to chart new path on non-compete enforcement
Herrick partner, John H. Chun, spoke with MLex about the Trump administration considering alternative methods of enforcement after the Federal Trade Commission ("FTC") abandoned its nationwide ban on non-compete agreements.
The article noted, according to Biden-era enforcers, "tens of millions of workers across the US are bound by restrictive agreements with thousands of companies, moving the needle requires a broad ban through rulemaking, not case-by-case enforcement from a perennially underfunded competition watchdog."
"Regardless of what happened with the FTC ban, there's a distinct trend towards curtailing the overbroad use of non-competes, particularly with respect to low-wage workers,” John told MLex.
"The proactive employers were already taking steps to curtail and narrow their use of non-competes," he said, "but there are plenty of others in the industry who haven't gotten that message and have been continuing to use non-competes on a blanket-wide basis across all of their employees."
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