FTC Non-Compete Scrutiny Will Prompt “Creativity”. . . How Employers and M&A Teams Will Structure Agreements to Achieve Their Goals. . . And How to Stop Them (When Necessary)
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Authors
Cox, Katherine M.
Issue Date
2025-12
Volume
59
Issue
1
Type
Journal Article
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Abstract
While many workers merely skim their employment agreements, nearly thirty million Americans are bound by a non-compete clause. In April 2024, the Federal Trade Commission (“FTC” or “Commission”) issued its final rule (“Rule”) to ban non-competes, set to go into effect in September of that year. While the FTC has launched attack on noncompetes, the Commission has a long way to go before abolishing these agreements and their counterparts. In the Rule, the FTC anticipated employers using “functional” equivalents to non-competes, but left out specifics for what qualifies as a legal or illegal agreement, leaving room for creative employers to find alternative ways to bypass the Rule without technically breaking the law.
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Citation
Publisher
Creighton University School of Law