Jenner & Block

"FTC May Wade into Enforceability of Non-Compete Agreements"

The FTC now seems poised to join the governmental activism into non-competes that has been trending over the past few years, as we have analyzed in prior alerts.  Commissioner Rebecca Slaughter recently spoke at the FTC’s headquarters about how the commission could use the rule-making process to address competition issues arising from the use and enforcement of non-compete agreements.  In her speech, Commissioner Slaughter said that she would like the FTC to consider limiting employers’ use and enforcement of non-compete clauses in employment agreements that limit employees’ abilities to change jobs within the same industry.  Such growing skepticism of non-compete agreements may translate into more widespread legislative and enforcement activity, impacting employers’ ability to enforce existing employment agreements.

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