Laura Smolowe Speaks with Axios Following a Texas Court’s Ruling on the FTC’s Non-Compete Rule

Munger, Tolles & Olson partner Laura Smolowe spoke with Axios about the Federal Trade Commission’s (FTC) ban on non-compete agreements in an article titled, “The future of the noncompete ban isn’t totally bleak,” following a Texas court’s ruling which held that the FTC’s agency action was unlawful and prohibited its enforcement nationwide. The FTC has argued that non-compete agreements harm workers and stifle innovation, but some employers defend them as a way to protect trade secrets and investments.

The article discusses a likely Supreme Court challenge to the ban, and also notes that many states have passed their own laws limiting non-competes. “There’s a lot happening at the state level. I definitely wouldn’t say to a client, if you want to do a non-compete that’s fine,” said Ms. Smolowe. The article also suggests that although the FTC has taken a hit thanks to recent rulings, it can still influence the issue through “levers of soft power” while the state of this policy continues to play out.

Ms. Smolowe’s practice focuses on complex commercial litigation, trials and arbitrations, as well as counseling clients through their most challenging legal issues — including but not limited to trade secrets, privacy, professional liability, breach of contract, breach of fiduciary duty and fraud. She has particular experience in the area of trade secrets and employee mobility across a wide array of industries, including technology, entertainment, fashion, retail, finance and pharmaceuticals.

Read the full Axios article. (Subscription may be required)