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Federal Trade Commission (FTC) Franchises Restrictive Covenants

Polsinelli

2024 Recap of Franchise Developments and 2025 Trends to Watch

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There were a number of important and potentially impactful developments in 2024 that we predict will continuing developing and trending in 2025. Some of these topics are also discussed in other articles in this annual update....more

Fox Rothschild LLP

Non-Competes Under the Microscope: NASAA’s Latest Guidance for Franchisors

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Recently, the North American Securities Administrators Association, Inc.’s (“NASAA”) Franchise and Business Opportunities Project Group (“FPG”) issued guidance on post-term non-compete clauses in the context of the franchise...more

Foley & Lardner LLP

Navigating Non-Compete Agreements: Key Considerations for In-House Counsel in Franchise Businesses

Foley & Lardner LLP on

In May of last year, the Federal Trade Commission (FTC) sought to ban non-compete agreements in most employment contracts. Franchise agreements were an exception. However, before the rule could take effect in September, a...more

Polsinelli

NASAA Supports Reasonable Post-Term Non-Competes in Franchise Agreements

Polsinelli on

Last year saw non-compete agreements come under repeated scrutiny from the Federal Trade Commission. On April 23, 2024, the FTC issued a final rule banning non-compete agreements in most employment contracts....more

Pillsbury Winthrop Shaw Pittman LLP

New DOJ–FTC Antitrust Guidelines for Business Activities Affecting Workers: Key Changes and Practical Takeaways

While the original guidelines focused primarily on per se illegal wage-fixing and no-poach agreements, the 2025 Guidelines illustrate a significant expansion in enforcement, broadening scrutiny to compensation benchmarking,...more

McCarter & English, LLP

Antitrust Guidelines for Worker-Related Business Practices: How to Stay on the Right Side of Antitrust Hiring Laws During the...

The Department of Justice Antitrust Division (DOJ) and the Federal Trade Commission (FTC) (together, the Agencies) issued Antitrust Guidelines for Business Activities Affecting Workers (2025 Guidelines) in January. The 2025...more

Morrison & Foerster LLP

A Parting Gift to Labor Markets: Outgoing Antitrust Enforcers Issue Revised Guidelines on Practices Affecting Workers, But Will...

In the final days of the Biden administration, the FTC and DOJ jointly issued antitrust guidelines on business practices that impact workers that replace the 2016 Antitrust Guidance for Human Resource Professionals, which...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

FTC and DOJ Jointly Issue ‘Antitrust Guidelines for Business Activities Affecting Workers’ on Eve of Trump Administration

Less than a week before the inauguration of President Donald Trump, the Federal Trade Commission (FTC) and U.S. Department of Justice’s (DOJ) Antitrust Division jointly published guidelines on assessing whether business...more

BakerHostetler

Department of Justice and Federal Trade Commission Release Guidelines on Business Practices That Impact Workers

BakerHostetler on

On January 16, 2025, in the waning hours of the Biden-Harris administration, the Department of Justice (DOJ) and Federal Trade Commission (FTC) jointly released their “Antitrust Guidelines for Business Activities Affecting...more

Morgan Lewis

DOJ and FTC Issue Antitrust Employment Law Guidelines on Eve of New Administration

Morgan Lewis on

In the final days of the Biden administration and on the eve of significant agency turnover, the US Department of Justice Antitrust Division (DOJ) and Federal Trade Commission (FTC) issued a new set of guidelines addressing...more

Jones Day

DOJ and FTC Issue New Antitrust Guidelines for Business Activities Affecting Workers

Jones Day on

During their last week in office, and over the vigorous dissent of Republican FTC commissioners, Biden administration antitrust officials unveil new guidelines intended to replace the 2016 Antitrust Guidance for Human...more

Skadden, Arps, Slate, Meagher & Flom LLP

FAQs About the FTC’s Broad New Ban on Noncompetes

When the Federal Trade Commission (FTC) issued its long-awaited final rule banning virtually all noncompete clauses between workers and employers, it also published 500-plus pages of commentary....more

Morrison & Foerster LLP

Potential Exceptions Under FTC’s Non-Compete Ban

On April 24, 2024, the U.S. Federal Trade Commission (FTC) promulgated its final rule prohibiting non-competes for most workers in the United States (the “Final Rule”). The Final Rule raises several issues, including...more

Williams Mullen

Are Your Non-Competes Still Valid? A Summary of the New Federal Trade Commission Rule

Williams Mullen on

On April 23, 2024, the Federal Trade Commission (FTC), pursuant to sections 5 and 6(g) of the Federal Trade Commission Act (the “Act”), issued their final “Non-Compete Clause Rule” (Rule). This Rule provides that non-competes...more

Polsinelli

What is the Impact of the FTC’s Final Non-Compete Rule on Franchisors and Franchisees?

Polsinelli on

As explained in Polsinelli’s prior alert of April 24, 2024, the FTC announced its final rule on non-compete covenants (the “Rule”) on April 23, 2024. Critically, the Rule does not prohibit non-compete agreements between...more

Akerman LLP

New FTC Rule Spares Non-Compete Clauses That Bind Franchisees, But Bans Most “Worker” Non-Compete Clauses

Akerman LLP on

On April 23, 2024, the Federal Trade Commission (FTC) voted to issue a Non-Compete Clause Rule that would ban most non-compete clauses in agreements between businesses and their “workers.” The final rule will take effect 120...more

Lathrop GPM

Federal Trade Commission Excludes Franchise Relationship From New Rule Prohibiting Non-compete Agreements

Lathrop GPM on

A big sigh of relief for franchisors: the FTC’s new rule prohibiting non-compete covenants will not apply to the franchisor-franchisee relationship. As expected by many, yesterday the FTC adopted sweeping new...more

UB Greensfelder LLP

FTC Issues Rule Prohibiting Non-Competes

UB Greensfelder LLP on

On April 23, 2034, the Federal Trade Commission (FTC) issued a final rule intended to ban the use and enforcement of most non-compete clauses signed by workers. The new rule is not in effect yet. It will become...more

Hendershot Cowart P.C.

FTC Votes To Adopt Final Rule To Ban Non-Compete Agreements

Hendershot Cowart P.C. on

On April 23, 2024, the Federal Trade Commission (FTC) voted to publish the “Non-Compete Clause Rule” to ban employers from entering into non-compete clauses with workers on or after the effective date. The rule will be...more

Fox Rothschild LLP

FTC Bans Virtually All Employment-Based Noncompete Agreements, Business Groups Seeking Injunction

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In a rare public meeting, the Federal Trade Commission (FTC) voted 3-2 on April 23, 2024, to approve a final regulatory rule (Final Rule) which bans virtually all preexisting and future noncompete agreements with very few...more

Bradley Arant Boult Cummings LLP

FTC Proposes Rule to Strike Noncompete Agreements Nationwide

On January 5, 2023, the Federal Trade Commission (FTC) announced a proposed new rule that would effectively prohibit employers from requiring employees to agree to noncompete clauses. The public is invited to submit comments...more

BakerHostetler

Decision Benefits Franchise Businesses and Finds Alston Bars Challenge to No-Poach Agreements

BakerHostetler on

In June 2021, the Supreme Court reaffirmed in NCAA v. Alston that antitrust claims under Section 1 of the Sherman Act “presumptively” call for rule-of-reason analysis and that only the rare case merits “quick look” or per se...more

Faegre Drinker Biddle & Reath LLP

Top 10 Noncompete Developments of 2019

If there was any question about whether there is a growing national trend to limit the enforceability of noncompetition agreements, 2019 settled the matter. Seven states enacted new statutes designed to limit the...more

Seyfarth Shaw LLP

State Attorneys General Urge FTC to Consider Labor Issues in Antitrust Enforcement

Seyfarth Shaw LLP on

A group of 18 state attorneys general (the “AGs”) recently filed comments with the Federal Trade Commission (“FTC”) in advance of a series of hearings centered on changes to antitrust and consumer protection enforcement in...more

Shumaker, Loop & Kendrick, LLP

Employee ‘No Poaching’ Agreements Meet the Antitrust Laws: Protection of Employees in the New Economy

For centuries employers have maintained a strong interest in trying to protect their most valuable asset, their key employees, from solicitation by and loss to other employers, especially competitors. As a result, “no...more

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