Noncompete agreements have been around in one form or another for centuries. On April 23, 2024, the Federal Trade Commission (FTC) came out with a law to ban noncompetes, on the premise that they are unfair to employees and stifle entrepreneurship and competition. In this Office Hours segment, Mark Konkel, Partner and Chair of Kelley Drye's Labor & Employment Practice, shares his knowledge of the history of noncompetes and their original intent, how they can work in favor and against both business owners and employees, and other subtleties of the practice.
What are the challenges around enforcing the ban? Several organizations, including the U.S. Chamber of Commerce, quickly filed a lawsuit against the ban, calling it "a blatant power grab that will undermine American businesses’ ability to remain competitive." Watch this video, in which Konkel sheds some much-needed light on the situation.
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