A federal district court in Texas has set aside a recently passed rule issued by the Federal Trade Commission (FTC) which made it illegal for employers to make employees sign non-compete agreements. These agreements were prohibited to make it easier for employees to obtain alternative work or start their own businesses. As a result of this ruling, the FTC’s rule cannot be enforced, but it will remain on the books until the case is fully litigated.
Tag: non-compete agreements
NY Governor Vetoes Ban on Non-Compete Agreements
Governor Kathy Hochul of New York has vetoed a law that would have banned non-compete agreements throughout the state. If it had passed, the law would have had a substantial impact on labor law, and affected employees across potentially every industry with these sorts of agreements in their employment contract. However, because of the veto, non-compete agreements will remain in place, at least for now.
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NY Senate Approves Ban on Non-Compete Agreements in Employment Contracts
The New York State Senate has voted to ban all non-compete agreements for employees in the state. The law, Bill No. S03100 would, if also approved by the New York State Assembly and signed into law, make it illegal for employers to write provisions in their contracts that would prevent employees from working with competitors in the same field or keep them from starting their own businesses. The goal of this law is to encourage competition and prevent employers from coercing their employees into working for them against their will.
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FTC Proposes Ban on Non-Compete Clauses for Employment Contracts
The Federal Trade Commission (FTC) has recently announced that it is considering a ban on non-compete clauses for employment contracts across the country. The rule, if accepted, would make it illegal for employers to require employees to sign non-compete agreements as part of their terms of employment. The rule is meant to help many employees who often struggle to find work as a result of these restrictive agreements.
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