In April 2024, the Federal Trade Commission (FTC) issued a final rule that took the extraordinary step of banning non-competition clauses in employment agreements nationwide. After numerous legal challenges, the ruling was found to be unconstitutional, arbitrary and capricious by U.S. District Judge Ada Brown of the Northern District of Texas. After the Judge Brown’s ruling, it is unclear the fate of non-competes and how the Federal Courts will continue to rule in the future.
This course will provide you with an overview of non-competition clauses, the rationale behind the FTC ruling banning non-competes in employment agreements, the legal challenges that were brought across the United States about the FTC ruling, the reasons why Judge Brown found the FTC ruling unconstitutional, arbitrary and capricious and what attorneys should consider when drafting or reviewing non-compete clauses on behalf of their clients.
Learning Objectives: