In the Headlines
August 28, 2024
Bar Unsurprised by Setting Aside of FTC Noncompete Rule
Massachusetts Lawyers Weekly
Labor and employment attorney David Santeusanio was interviewed by Massachusetts Lawyers Weekly about a federal judge's decision to set aside the Federal Trade Commission's (FTC) noncompete rule, which was set to take effect on Sept. 4, 2024. The article discussed the implications of this ruling for employers, who can now focus on complying with state laws governing employee movement restrictions. Mr. Santeusanio noted that the FTC may face an uphill battle if it chooses to appeal the decision, given the U.S. Court of Appeals for the Fifth Circuit's stance on government overreach. He also commented that even if the FTC loses an appeal, companies will still have work to do.
"I think employers will continue to evaluate their noncompetes and other restrictive covenants because, even if this FTC rule ultimately fails, states continue to legislate in this area, and employers are always in a position where they need to be constantly evaluating the enforceability of their noncompetes and nonsolicits and other protections of confidential information," he said.
READ: Bar Unsurprised by Setting Aside of FTC Noncompete Rule
"I think employers will continue to evaluate their noncompetes and other restrictive covenants because, even if this FTC rule ultimately fails, states continue to legislate in this area, and employers are always in a position where they need to be constantly evaluating the enforceability of their noncompetes and nonsolicits and other protections of confidential information," he said.
READ: Bar Unsurprised by Setting Aside of FTC Noncompete Rule