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FTC Wins Round Two in Its Non-Compete Ban Defense


The Federal Trade Commission (FTC) is seeking to ban nearly all employee non-compete agreements in the United States [see April 25, 2024 Alert]....

The Federal Trade Commission (FTC) is seeking to ban nearly all employee non-compete agreements in the United States [see April 25, 2024 Alert]. Second, and more interesting for purposes of discerning whether the ban will ever actually go into effect, the Court held that the FTC did indeed have the power under its statute to issue substantive rules regarding unfair methods of competition. At that time, if the employer violated the final cease and desist order, the FTC could then file a lawsuit asking a court to award it civil penalties.

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