Authors Neil Schur and Bennett Pine of Anderson Kill provide a modified version
of their previous article published in the Intelligencer on Jan.10, ‘The FTC’s Noncompete Rule Is Likely Dead.’ Here, they review recent changes to select state laws concerning noncompetes, including the partial ban in NY that Gov. Kathy Hochul vetoed late last year.

The FTC’s rule banning most covenants not to compete (widely known as “noncompetes”) nationwide is likely dead.

Noncompetes are agreements between employees and employers in
which the employee promises not to “compete” with the employer—e.g., take a job with a competitor or start a competing business—-- for a specific period of time and/or within a particular geographic area should the employment relationship terminate.

We believe that the FTC rule banning noncompetes, the enforcement of which is currently enjoined by a federal district court in Texas, is unlikely to survive for two reasons.

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