In August 2024, just a few months after the Federal Trade Commission (FTC) issued a rule banning nearly all noncompete agreements between companies and workers, a federal judge blocked the rule nationwide. Despite the injunction and dramatic shifts in federal government priorities under a new president, the FTC recently announced that noncompete agreements will remain in its crosshairs. In a recent HR Laws article, Partner Jill Chasson examined the uncertain future of noncompete agreements and provided employers guidance as they navigate the FTC’s continued scrutiny of restrictive employment practices.

Jill highlighted the FTC’s commitment to challenging noncompete agreements as part of a broader focus on labor practices. Citing concerns about worker mobility and wage suppression, the agency has even established a task force to investigate deceptive, unfair, and anti-competitive labor market practices.

Beyond examining the regulatory landscape, Jill advised businesses to review existing restrictive covenants with employees, ensuring they comply with state laws and protect legitimate business interests. Additionally, she recommended employers reassess potentially anti-competitive agreements requiring repayment of employee-related costs and to avoid no-poach agreements with other companies that restrict hiring.

Well-versed in the many federal and state laws that govern the workplace, Jill regularly works with employers to develop key policies, resolve difficult personnel issues, and provide guidance regarding legal compliance and risk management. When disputes arise, she represents employers before administrative agencies, in arbitration proceedings, and court litigation regarding a variety of employment-related claims.

For more, read the full HR Laws article.