Hotel Business Review: Jacqueline Voronov on the FTC Rule Banning Non-Compete Agreements

Overview

As businesses and courts continue to make decisions related to the Federal Trade Commission (FTC) rule banning non-compete agreements, Paramus Partner Jacqueline Voronov authored an article for the June 2024 issue of Hotel Business Review offering insight on what leaders in the hospitality industry should know about the impending rule.

“The FTC’s rule would ban almost all existing non-compete clauses and agreements and prohibit all new non-compete clauses for all employees at all levels and will render previous agreements unenforceable as of September 4, 2024,” Jacqueline said. “Although the FTC rule is a significant development and departure from existing law by treating most non-competes as per se illegal, it is still too premature for employees to rejoice or employers to panic. There is much uncertainty as to when, if ever, the rule would become effective and enforceable as it is already facing legal challenges.”

While there is uncertainty as to whether or how the rule will ultimately be enforced, Jacqueline shared extensive insight on what the new rule says, what its impact would be if implemented, and potential penalties for violating the rule.

For more insight, the full article is available to subscribers on the Hotel Executive website.

About Hotel Business Review

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Disclaimer

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