Alexander Okuliar

May 2, 2024 | jdsupra.com | Megan Gerking |Alexander Okuliar |Lisa Phelan

Potential Exceptions Status Under Final Rule FTC Comments/Rules Sale of Business Not prohibited Codified in § 910.3 – The exception “shall not apply to a noncompete clause that is entered into by a person pursuant to a bona fide sale of a business entity,[3] of the person’s ownership interest in a business entity, or of all or substantially all of a business entity’s operating assets” Note that the Final Rule does not contain the 25% ownership threshold that the FTC included in its proposed...

Feb 9, 2023 | jdsupra.com | Megan Gerking |Rob Manoso |Alexander Okuliar

On January 4, 2023, the Federal Trade Commission (“FTC”) announced settlements with three companies for their use of employee non-compete restrictions in alleged violation of Section 5 of the FTC Act. Specifically, the FTC claimed that the non-compete provisions in the companies’ employment contracts unlawfully restricted employees’ mobility and ability to earn higher wages, while also impeding other companies’ ability to compete for the affected employees.