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News & Insights

FTC Adopts Rule “Banning” Non‑Compete Clauses with Workers

April 25, 2024

On April 25, 2024, Cravath prepared a memo for its clients entitled “FTC Adopts Rule “Banning” Non‑Compete Clauses with Workers.” The memo examines the Federal Trade Commission’s recently adopted final rule broadly deeming non‑compete clauses with “workers” to be an “unfair method of competition” under Section 5 of the Federal Trade Commission Act. The memo outlines how the final rule does not necessarily constitute a ban on non‑compete clauses, potential legal challenges to the final rule and expected future enforcement. The memo concludes with recommendations for companies to consider to ensure they are in position to adapt to the changing landscape.

Please click here to read the memo.

Related Practices & Industries

  • Corporate
  • Executive Compensation and Benefits
  • Litigation
  • Antitrust

Authors

Photo
Name
Eric W. Hilfers
Title
Executive Compensation and Benefits
Title
Partner
Email
ehilfers@cravath.com
Phone
+1-212-474-1352
vCard
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    Education

    • J.D., 1998, University of Chicago Law School
      with Honors
    • A.B., 1995, Princeton University

    Admitted In

    • New York
    Photo
    Name
    Noah Joshua Phillips
    Title
    Litigation
    Title
    Partner
    Email
    nphillips@cravath.com
    Phone
    +1-202-869-7740
    vCard
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      Education

      • J.D., 2005, Stanford Law School
        Winner, 2005 Marion Rice Kirkwood Moot Court
      • A.B., 2000, Dartmouth College
        Phi Beta Kappa, magna cum laude

      Admitted In

      • New York
      • District of Columbia
      Photo
      Name
      Amanda Hines Gold
      Title
      Executive Compensation and Benefits
      Title
      Partner
      Email
      agold@cravath.com
      Phone
      +1-212-474-1110
      vCard
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        Education

        • J.D., 2007, Arizona State University
          magna cum laude
        • B.S., 2001, University of Arizona

        Admitted In

        • New York
        Photo
        Name
        Jonathan J. Katz
        Title
        Executive Compensation and Benefits
        Title
        Partner
        Email
        jkatz@cravath.com
        Phone
        +1-212-474-1538
        vCard
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          Education

          • LL.M., 2013, New York University School of Law
          • J.D., 2007, Benjamin N. Cardozo School of Law
            Order of the Coif, Dean's Distinguished Scholar, summa cum laude
          • B.S., 2003, Cornell University

          Admitted In

          • New York
          Photo
          Name
          Matthew J. Bobby
          Title
          Executive Compensation and Benefits
          Title
          Partner
          Email
          mbobby@cravath.com
          Phone
          +1-212-474-1128
          vCard
          Download vCard

            Education

            • J.D., 2012, Harvard Law School
              magna cum laude
            • M.A., 2009, University of Pennsylvania
            • B.A., 2009, University of Pennsylvania
              Phi Beta Kappa, summa cum laude

            Admitted In

            • New York

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