Despite recent legal challenges by business groups to the Federal Trade Commission’s ban on noncompete agreements, companies will still need to adhere to state laws that prohibit such contractual provisions. Gwendolyn Lindsay Coole, the Assistant Wisconsin Attorney General for Antitrust, emphasized this during her address to the Federalist Society, cautioning companies against any premature relaxation of compliance.
She stated that enforcement of time, space, and scope-type noncompete rules would still be seen in some states. Ms. Coole advised businesses to maintain compliance with these laws, regardless of the outcome of the current legal challenge. This effectively underscores the importance of these laws in the wider context of antitrust legislation, despite any federal-level debates.
For more in-depth insights on this topic, the full remarks of the Assistant Attorney General can be accessed at this link.