Tuesday’s decision by the Federal Trade Commission to ban virtually all noncompetes could be challenged in court – as soon as today, according to Warner Norcross + Judd LLP labor and employment litigator Dean Pacific.
Pacific talked with Crain’s Grand Rapids Business after the FTC voted 3-2 to put an effective end to the use of most business noncompetes, which prohibit employees from leaving one company to work for a competitor in their industry. He’s expecting an injunction to prevent the new rule from being enforced.
“Very quickly, it’s going to be the subject of litigation,” Pacific told Crain’s. “It’s such a sweeping regulation of the economy.”
He went on to say, “There’s good reason to believe the court might agree with the folks that say this is an overreach by the agency and they don’t have the authority to pass a rule like this, a rule this sweeping.”
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