Labor of Law: Federal Noncompete Ban Would Be Far From Last Word on Issue
John Chun, partner in Herrick's Restructuring & Finance Litigation and Employment Law Groups, was featured in Law.com's Labor of Law column. In this article, John discussed the upcoming Federal Trade Commission ("FTC") regulation that is expected to restrict how companies use noncompete agreements and could have major implications for employers nationwide.
John said, "Given labor policies by the Biden administration that focus on helping low-wage workers, I expect industries with these workers to bear the brunt of FTC scrutiny."
John noted, "An FTC rule likely will come under scrutiny itself. He added, “Under the [Federal Trade Commission] Act, the FTC has the authority to regulate unfair methods of competition. But whether or not that authority extends to regulating or banning noncompetes remains to be seen.”
John encouraged employers to stay abreast of the state laws that apply to their employees while we wait to see how the FTC's rulemaking pans out.
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