Resources

Client Alerts, News Articles, Blog Posts, & Multimedia

Everything you need to know about BMD and the industry.

President Biden Seeks to Limit Non-Compete Agreements

Client Alert
July 8, 2021

Today, President Biden announced he would issue an Executive Order that calls on the Federal Trade Commission (FTC) to adopt rules to curtail worker non-compete agreements. Interestingly, a week ago, the FTC approved changes to its Rules of Practice to modernize and expedite the way it issues Trade Regulation Rules. 

If you have followed our alerts, we predicted the elimination of non-competes would probably happen. In 2016, then-Vice President Biden was a vocal opponent against non-compete agreements. He led the Obama administration’s initiative seeking to limit or eliminate non-compete agreements. In his presidential campaign, Biden promised to “work with Congress to eliminate all non-compete agreements, except the very few that are absolutely necessary to protect a narrowly defined category of trade secrets....”

Since this is not an act of Congress, the question will be the extent and timing of any FTC rules.

The FTC enforces and administers a wide variety of federal consumer protection laws and regulations that prevent fraud, deception, and unfair business practices. It also develops policy initiatives on issues that affect competition, consumers, and the U.S. economy. 

Once the Executive Order is issued, it will be interesting to determine the authority under which the FTC will issue its rules. We anticipate that the FTC will assert authority under its broad power to protect consumers from unfair or deceptive acts or practice (“UDAP”) and unfair methods of competition (“UMC”). On January 9, 2020, the FTC held a workshop to examine whether there is a sufficient legal basis and empirical economic support to promulgate an FTC rule that would restrict the use of non-compete clauses in employer-employee employment contracts. After the workshop, the FTC extended the public comment period through March 10, 2020, but the Commission has not issued any subsequent guidance on the subject.

Stay tuned for additional information. With the announcement of the Executive Order, the outcome of the FTC non-compete analysis should soon be released. 

For additional information or strategic planning on non-competes or other restrictive covenants, contact Jeffrey C. Miller, jcmiller@bmdllc.com 216.658.2323 or any member of the BMD L+E team.

federal trade commissionJeffrey C. MillerLabor and Employment Law
Client Alert

Starting an Advanced Practice Provider Practice

May 13, 2024Advanced practice providers (APPs), which includes non-physician providers such as nurse practitioners, physician assistants, and nurse anesthetists, commonly start their own healthcare practices. Practices may provide, for example, service offerings such as primary care, anesthesiology, mental health, and aesthetics (medical spas). However, there are a number of considerations and steps that must be taken for APPs to compliantly function independently.Client Alert

FTC Increases Targeting of Companies Lacking Cyber Protection

May 13, 2024The Federal Trade Commission (FTC) recently released a comprehensive cybersecurity report outlining key findings and recommendations based on emerging threats, trends in data breaches, and strategies for businesses to enhance their cybersecurity posture observed over the last year.Client Alert

New Federal Medical Conscience Rule and Its Implications

May 13, 2024The Department of Health and Human Services Office for Civil Rights issued a Final Rule to clarify protections for healthcare providers who refuse services based on religious or moral beliefs. This includes protection against discrimination for refusing procedures like assisted suicide or abortion. The OCR can receive complaints, conduct investigations, and enforce these protections. Entities are encouraged to update policies accordingly and display a model notice provided by the OCR.Client Alert

Marijuana Reclassification and APRN/PA Prescribing

May 7, 2024Marijuana is expected to be reclassified by the Drug Enforcement Administration (DEA) from a Schedule I controlled substance to a Schedule III controlled substance as a result of efforts by the Biden administration.Client Alert

Federal Trade Commission Voids Non-Compete Agreements Nationwide

April 30, 2024On April 23, 2024, the U.S. Federal Trade Commission (“FTC”) issued its Final Rule containing regulations impacting non-compete agreements across the country for all employees. The Final Rule implements some of the most impactful changes to employment law during this century. The Final Rule will take effect 120 days from its publication in the Federal Register, which we expect to occur within the next few weeks.
Older posts