As we predicted, earlier today, 100 industry organizations submitted a request to the Federal Trade Commission (FTC) to extend the comment period for its proposed rule banning noncompetes nationwide by an additional 60 days. According to the letter, “[t]he regulated community should be given sufficient time to assess the potential consequences of the rulemaking and develop insightful comments for the Commission to consider.” The letter further states:
As previously reported, the Federal Trade Commission (FTC) proposed a rule on January 5, 2023, that would ban noncompetes nationwide. There are serious questions about the FTC’s authority to promulgate such a rule and many practical reasons why such a sweeping approach is unwarranted—in particular at the federal level. The period for submitting formal comments to the proposed rule lasts 60 days following publication of the proposed rule in the Federal Register. The FTC did not file the proposed rule with the Federal Register until January 18, 2023, and it will not be published until January 19, 2023, meaning that the comment period will end on March 20, 2023—not March 10, 2023, as the FTC initially announced. We are told that there will be a formal request to extend the comment period for an additional 60 days, or until May 19, 2023, and that the FTC is likely to grant the request.
Continue Reading Comments to the FTC’s Proposed Noncompete Ban Due March 20, 2023 – and the Comment Period May Be Extended Another 60 Days
Now on Spilling Secrets, our podcast series on the future of non-compete and trade secrets law:
The holidays are over, and year-end bonuses are being paid, making January and the first quarter a common time for employees to jump ship to work for a competitor.
Our all-star panel of attorneys – Pete Steinmeyer, Kate Rigby, Millie Warner, and Erik Weibust – discuss what an employer should do in this situation.
Continue Reading Spilling Secrets Podcast: What to Do When a Star Employee Decamps to a Competitor
Our colleagues Erik W. Weibust, Peter A. Steinmeyer, and Stuart M. Gerson co-authored an article in the Legal Backgrounder, published by the Washington Legal Foundation, titled “After 200+ Years Under State Law, FTC Proposes to Sweep Away All Noncompetes in Unauthorized Federal Power Grab.”
Following is an excerpt:
Continue Reading FTC Proposes to Sweep Away All Noncompetes in Unauthorized Federal Power Grab
On Thursday, January 5, 2023, the Federal Trade Commission (FTC) made headlines with its announcement that it is proposing a new rule that would ban employers from using noncompete clauses (the “rule”).
The rule, as drafted, would prohibit employers throughout the United States from relying on or enforcing covenants to not compete. It is retroactive, further requiring the rescission of any such restrictive covenants currently in existence by an undetermined compliance date (which will be at least 240 days from now, at the earliest). The rule also specifies that the federal regulations would supersede any contradictory state law.
The announcement, while stunning to many, is a development that we anticipated and questioned halfway through 2022 and saw coming by the end of the year.
Continue Reading Will the FTC Ban Noncompetes? What Employers Need to Know About the Proposed Rule
Now on Spilling Secrets, our podcast series on the future of non-compete and trade secrets law:
The year is coming to a close, and it was a big one in the world of trade secrets and non-competes. In this episode, we’re running down the key trends of 2022.
Continue Reading Spilling Secrets Podcast: Top Trade Secret and Non-Compete Developments of 2022
Thomson Reuters Practical Law has released the 2022 update to “Non-Compete Laws: Illinois,” a Q&A guide to non-compete agreements between employers and employees for private employers in Illinois, co-authored by our colleagues Peter Steinmeyer and David Clark, Members of the Firm in the Employment, Labor & Workforce Management practice.
Continue Reading Illinois Non-Compete Laws: Q&A for Employers, 2022 Update
Now on Spilling Secrets, our podcast series on the future of non-compete and trade secrets law:
When faced with trade secret misappropriation, employers must decide how to proceed. In this episode, hear some tips on how and why employers might choose to refer the matter for criminal investigation.
Continue Reading Spilling Secrets Podcast: When Trade Secret Misappropriation Goes Criminal
Now on Spilling Secrets, our podcast series on the future of non-compete and trade secrets law:
Non-compete agreements are generally unenforceable against lawyers, but there are some exceptions. In this episode, hear about employer options for restrictive covenants, including non-competes, non-solicits, and confidentiality agreements, for both in-house and outside lawyers.
Continue Reading Spilling Secrets Podcast: Non-Compete Agreements for In-House and Outside Lawyers
Now on Spilling Secrets, our podcast series on the future of non-compete and trade secrets law:
An employer often overlooks training employees on what their restrictive covenant means and how to honor their confidentiality, non-competition, and non-solicitation obligations. But this type of training can be critical for employers in protecting trade secrets and avoiding litigation in the future.
Continue Reading Spilling Secrets Podcast: Employers – Train on Trade Secrets