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In May 2023, Jennifer A. Abruzzo (the “General Counsel”), General Counsel for the National Labor Relations Board (“NLRB”), took the position that certain non-compete provisions violate the National Labor Relations Act (“NLRA”) (as discussed here) by restricting employee mobility. Now, in an October 7, 2024, memorandum (GC 25-01), the General Counsel has expanded on the topic of employee mobility by targeting “stay-or-pay” provisions.

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On August 20, 2024, the U.S. District Court for the Northern District of Texas entered a final judgment (“Order”) setting aside, on a nationwide basis, the Federal Trade Commission (“FTC”) final rule (“Rule”) prohibiting non-competition agreements.

As we previously addressed, on April 24, 2024, the Federal Trade Commission (“FTC”) voted to finalize its rule prohibiting businesses from entering into or enforcing non-compete clauses in nearly all agreements with workers (“FTC Rule”).

On April 23, 2024, the Federal Trade Commission (“FTC”) voted 3-2, on party lines, to finalize its rule prohibiting businesses from entering into or enforcing non-compete clauses in nearly all agreements with workers.

An important federal appeals court has clarified a key principle of antitrust law in a way that potentially makes it more difficult for an employer to win a motion to dismiss, and thereby avoid expensive discovery, with respect to company agreements that contain commonly used hiring restrictions.

The drumbeat of opposition to non-compete agreements is getting even louder, as New York is now poised to enact a law that, if passed, would create sweeping prohibitions against non-competes in that state.

While employers wait to see whether, and to what extent, the Federal Trade Commission enacts its proposed rule banning non-competes, the Office of the General Counsel for the National Labor Relations Board (the “NLRB”) has joined the fray, denouncing the legality of restrictive covenants.

On April 28, 2023, U.S. District Judge Victor A. Bolden issued the latest blow toSteve Medlock, Craig Seebald, Rami Rashmawi, Becky Baker the Department of Justice’s (“DOJ”) efforts to criminally prosecute individuals who engage in “no-poach” agreements by granting the defendants’ motion for judgment of acquittal.

On January 5, 2023, the Federal Trade Commission (“FTC”) announced plans to prohibit employers from imposing or enforcing non-compete clauses in agreements with workers, including employees and independent contractors, in almost all contexts.