Matt Fontana Comments on Increasing FTC, State Scrutiny on Noncompetes in Modern Healthcare

In the Modern Healthcare article “FTC, state scrutiny of noncompetes shifts labor market” labor and employment partner Matt Fontana provided insights on employment trends as courts and legislatures ramp up criticisms of noncompetes throughout the country. 

Modern Healthcare reported that when the Federal Trade Commission (FTC) proposed a ban on noncompete agreements last year, a U.S. District Court for the Northern District of Texas issued a preliminary injunction, halting the commission’s ban. While the injunction only applies to those involved in the lawsuit, many expect the court to expand the injunction nationwide before the rule takes effect in September. 

However, Fontana noted that if the FTC’s ban falls short, the National Labor Relations Board may step in. He said the agency may be best equipped to do so after Congress gave the NLRB power shape national labor policy.