What the FTC’s New Ban on Noncompete Agreements Might Mean for Your Business
In January 2023, the FTC proposed a groundbreaking rule to ban noncompete agreements, sparking significant public debate. Following a recent 3-2 vote, the final rule classifies these agreements as an “unfair method of competition,” promising to reshape the business landscape. With potential benefits like the creation of over 8,500 new businesses annually and increased earnings for workers, employers must prepare for the rule’s implementation by Fall 2024. Discover how this change could impact your organization and what steps you need to take to adapt. Read on to learn more about the implications for your business!
The FTC’s Annual HSR Threshold and Filing Fee Increases for 2024
On January 22, 2024, the FTC announced revised Hart-Scott-Rodino Act reporting thresholds and a new tiered filing fee structure, reflecting annual adjustments tied to U.S. GNP and mandates under the Merger Filing Fee Modernization Act of 2022. Effective March 6, 2024, the changes increase the minimum reportable transaction size to $119.5 million and significantly raise filing fees, underscoring the need for companies to carefully evaluate premerger notification obligations and potential antitrust risk.
FTC’s Proposed Ban on Noncompete Agreements — Delayed Again, But Not Dead Yet
In January 2023, the FTC proposed a rule to ban noncompete agreements, claiming it could increase wages by nearly $300 billion annually and benefit 30 million Americans. Labor unions support the initiative, while business groups challenge the FTC’s authority. The comment period has been extended, with a final vote planned for April 2024. As opposition to noncompetes grows, their future remains uncertain. What does this mean for employers and workers?
Hart-Scott 2023 Premerger Filing Fees Increase Substantially
The Federal Trade Commission has updated the Hart-Scott-Rodino Act, impacting premerger filing fees and thresholds. Larger transactions now incur higher fees, while smaller ones enjoy reductions. The minimum transaction size for filings is now $111.4 million, which lowers the number of deals requiring scrutiny. This year’s changes also introduce new fee tiers for deals over $1 billion and higher penalties for non-compliance. Companies considering mergers must navigate these updates carefully to avoid costly consequences.
Contemplating a Sizable Merger, Acquisition or Joint Venture?–Updated HSR Merger Notification Threshold Tests for Federal Antitrust Review Apply in March 2019
Are you considering a merger, acquisition, or joint venture? Recent changes to the Hart-Scott-Rodino Act have increased reporting thresholds for federal antitrust review to $90 million, along with new filing fees. Understanding these updates is crucial for businesses in this landscape. Increased penalties for non-compliance highlight the need for HSR counsel. Stay informed to keep your transactions compliant and strategic.