Frost Brown Todd partner Michael Freimann is quoted by Lexology Pro discussing the Federal Trade Commission’s (FTC) public inquiry into employers’ use of non-compete agreements. Freimann observes that the agency “appears aligned with trade associations on the application of non-competes” and explains that its latest enforcement action signals a likely focus on employers that impose these agreements “across the board,” rather than those that apply them selectively based on job title or salary.
“One of the primary reasons the FTC decides to file a complaint against Gateway Services is because everybody that the company onboards, regardless of their salary or job title, receives a non-compete agreement,” Freimann explains. “I think one of the major factors for the FTC is going to be whether there is a demarcation in job title or salary as to who does and does not receive a non-compete. If there isn’t, then that could be a potential red flag.”