FTC Sues Over Vendor’s Customer No-Hire Agreements

The FTC announced that it and the New Jersey Attorney General’s Office reached settlements with a building services company barring it from using no-hire agreements restricting its vendors’ ability to recruit or hire another company’s employee.

WHY THIS IS IMPORTANT… The FTC tried to issue a national rule prohibiting practically all employee noncompete agreements. This case shows the FTC has not totally walked away from this issue.  The FTC is now going after no hire provisions in commercial contracts.