ANALYSIS: Noncompetes Pose Evolving Legal Risks as Feds Move In

Employers are on notice: Federal agencies are coming for noncompetes.

But while it’s crucial to keep an eye on federal developments, employers shouldn’t lose sight of the myriad of emerging and existing state laws and court precedent, which can lead to litigation, monetary penalties, and even criminal repercussions if overlooked.

On the federal level, an FTC rule on noncompete agreements is winding its way through the regulatory process, with an expected agency vote in April 2024. This is further complicated by the National Labor Relations Board general counsel’s recent announcement that many noncompetes violate Section 7 of the National ...