Employers hoping the new administration would scale back scrutiny of employee non-compete agreements may need to reconsider. The Federal Trade Commission (FTC) continues to aggressively challenge non-compete agreements under Section 5 of the FTC Act, as shown by its recent consent order with Rollins, Inc., the parent company of Orkin, HomeTeam and Critter Control. The FTC alleges that broad non-compete agreements restrict employee mobility and suppress competition, particularly for non-executive workers. The Rollins case provides an important warning for employers that use non-compete agreements, restrictive covenants or post-employment restrictions and offers insight into how the FTC may continue enforcing federal non-compete rules despite ongoing legal challenges to a nationwide non-compete ban.
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