FTC Non-Compete Rule: Status, Impact, and What Employers Must Do Now
Courts split on nationwide non-compete ban's validity
Sterling & Ghold's team of experienced practitioners brings decades of specialized expertise to every matter, combining deep industry knowledge with practical commercial judgment. Our lawyers work seamlessly across offices and practice groups to deliver integrated advice that addresses the full scope of our clients' objectives.
The Federal Trade Commission's rule prohibiting most non-compete agreements in employment contracts has produced a wave of litigation and a split among federal district courts on the rule's validity. Employers are left in an uncertain environment in which the enforceability of existing non-competes and the ability to impose new ones depend heavily on jurisdiction and evolving judicial decisions.
Sterling & Ghold's team of experienced practitioners brings decades of specialized expertise to every matter, combining deep industry knowledge with practical commercial judgment. Our lawyers work seamlessly across offices and practice groups to deliver integrated advice that addresses the full scope of our clients' objectives.
We advise employers to conduct an immediate inventory of existing non-compete agreements, analyze enforceability under applicable state law independent of the federal rule, and consider alternative protections—including strengthened confidentiality and non-solicitation provisions and trade secret programs—to protect legitimate business interests.
