Two federal agencies dealing with employment issues, the Federal
Trade Commission (FTC) and the Department of Labor (DOL), are
considering or have already implemented new rules that will affect
employers. The issues relate to noncompete agreements and
joint employment.
On January 9, 2020, the FTC held a public workshop to examine
whether there is a sufficient legal basis and empirical economic
support to promulgate a rule restricting the use of non-compete
clauses in employer-employee contracts. The U.S. Department
of Justice Antitrust Division held a similar workshop in September
2019.
Non-compete agreements have historically been the province of
state law, and the laws vary widely. For instance,
employer-friendly states such as Florida generally allow
enforcement of non-compete agreements and provide a statutory
framework requiring only minimal proof of a legitimate business
interest that needs to be protected. On the other end of the
spectrum, some other
