In a recent NC Lawyers Weekly article, labor and employment attorney Will Oden shared his insights on the ongoing legal challenges surrounding noncompetition agreements and the Federal Trade Commission's (FTC) attempts to regulate them.
In "Lawyers: Noncompetition agreement ban faces uncertain future," Will highlighted the complexities and legal hurdles faced by the FTC in its endeavor to ban most noncompete covenants. Reflecting on the FTC's proposed rule, which a federal court in Texas recently blocked, he remarked, "My sense at the time was that the proposed rule was going to get knocked down." He expressed skepticism about the FTC's authority, stating, "My personal opinion was that the FTC does not have the rulemaking authority to take the action that they took."
The article delves into the broader implications of the court ruling and the uncertain future of noncompete agreements in the U.S. legal landscape. Will noted that despite recent setbacks, regulatory agencies like the FTC are not entirely powerless. "The FTC still maintains the right to pursue individual enforcement actions on a case-by-case basis, even if the rule is not in effect," he explained.
Will also emphasized that noncompete agreements will continue to be a contentious issue, influencing legal practices and employment policies.
