FTC Issues Rule Banning Worker Noncompete Agreements

By Rachel B. Cowen, Brian Mead, Katharine O’Connor, Lisa Rumin, Stephen Wu and Alex Grayson on April 30, 2024

Posted In Employee Benefits, Employment, Executive Compensation, Labor

On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 along party lines to ban all new noncompete agreements nationwide and render existing noncompete agreements binding most workers unenforceable. The Final Rule, slated for publication in the Federal Register, provides that employers’ use of noncompete agreements amounts to an “unfair method of competition” that runs afoul of Section 5 of the FTC Act.

Read more here.

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Tags: Biden administration, employees, employers, Federal Trade Commission, FTC, noncompete, Section 5 of the FTC Act, workers

Rachel B. Cowen
Rachel B. Cowen focuses her practice in various employment discrimination and wrongful termination cases in federal and state courts. Rachel’s experience includes prosecuting and defending employee mobility and trade secret litigation on an emergency injunctive basis. She also counsels employers facing union organizing activity and picketing, and has successfully tried numerous cases before the National Labor Relations Board. She also handles collective bargaining and labor arbitrations. Additionally, Rachel represents financial services companies and professional engineering firms in unfair competition cases. Read Rachel Cowen's full bio.

Brian Mead
Brian Mead is an employment litigator and transactional advisor. He leads McDermott’s Trade Secrets and Restrictive Covenants Subgroup. Clients call upon him for his substantial experience prosecuting and defending employee mobility, restrictive covenant and trade secret litigation cases across various industries including private equity, healthcare, professional services, technology and manufacturing. Read Brian Mead's full bio.

Katharine O’Connor
Katharine (Kate) O’Connor focuses her practice on complex antitrust litigation, antitrust investigations brought by the US antitrust regulators and state attorneys general, and counseling clients on antitrust compliance questions. She also regularly represents clients before the antitrust regulators related to mergers and acquisitions. Kate has experience representing clients in a wide array of industries, including healthcare, manufacturing, food and finance. Read Katharine O’Connor's full bio.

Lisa Rumin
Lisa P. Rumin focuses her practice on antitrust, regulatory and litigation matters. She assists clients across a variety of industries and has represented numerous clients in the healthcare, pharmaceutical, and biotechnology industries. Lisa advises clients on mergers and acquisitions, including obtaining clearance from the Federal Trade Commission (FTC) and Department of Justice (DOJ), as well as counsels clients on issues regarding antitrust compliance, pricing, and distribution. She also counsels clients on cartel prosecutions and defenses, including government investigations and the initiation and defense of civil class action litigation. Lisa is experienced in areas of e-discovery, document review and production for investigations before the FTC, DOJ and state attorneys general office. Read Lisa P. Rumin's full bio.

Stephen Wu
Stephen Wu focuses his practice on antitrust litigation, defending mergers and acquisitions before antitrust enforcement agencies and counseling clients on antitrust compliance issues. He represents clients in a wide variety of industries ranging from aerospace to consumer products and food, with a particular concentration on health care antitrust matters. He is co-chair of the Firm’s Health Antitrust Affinity Group. Read Stephen Wu's full bio.