The US FTC sets its sights on noncompete agreements and launches its first major standalone section 5 claims

Introduction Last week, the FTC announced two significant moves. First, the FTC brought its first major standalone Section 5 actions, [1] targeting certain companies’ employment noncompete agreements as unfair methods of competition. The very next day, the FTC issued a Notice of Proposed Rulemaking that would ban nearly all employment noncompete agreements in the United States (the “Proposed Rule”). The Proposed Rule is significant in and of itself, potentially invalidating millions of noncompete agreements. Moreover, the complaints and the Proposed Rule reflect a newfound willingness of the FTC to bring standalone Section 5 claims and to issue substantive rules prohibiting certain practices wholesale. We discuss each action in turn. Section 5 Standalone Claims On January 4, the FTC

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Authors

  • Shearman & Sterling (Washington)
  • Shearman & Sterling (Washington)
  • Shearman & Sterling (New York)
  • Shearman & Sterling (Washington)
  • Shearman & Sterling (Washington)
  • Shearman & Sterling (Washington)
  • Shearman & Sterling (Washington)
  • Shearman & Sterling (San Francisco)

Quotation

Ben Gris, David A. Higbee, Jessica K. Delbaum, Djordje Petkoski, Rachel Mossman, Ryan Shores, Jacob Coate, John Cove, The US FTC sets its sights on noncompete agreements and launches its first major standalone section 5 claims, 4 January 2023, e-Competitions January 2023 - II, Art. N° 110554

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