FTC Brings Charges Over Noncompete Clauses

Andrew Turnbull spoke to SHRM about the Federal Trade Commission (FTC) issuing an order settling charges that two glass container manufacturers illegally imposed noncompete restrictions on workers across a variety of positions, with the agency directing the companies to tell workers that their noncompete agreements are nullified.

"Whether the FTC will continue pursuing such actions remains to be seen, but employers should be mindful of the potential enforcement risks and review their current noncompete practices considering these settlements," Andrew said. "Although noncompetes with low-wage or low-skilled workers are likely the most vulnerable to attack, it is important to note that the FTC's recent enforcement actions were not limited to noncompetes with those types of workers."