Appeals Court Backs Cigna in Noncompete Ruling With FTC Rule in Limbo
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Jul 05, 2024
A federal appeals court recently ruled that former Cigna Group executive Amy Bricker cannot join rival CVS Health Corp. due to a noncompete agreement, upholding a preliminary injunction from last year. While the case involving Bricker suggests companies can effectively prohibit employees from switching jobs, firms may no longer be able to do so later this year.
A Federal Trade Commission (FTC) final rule published in the Federal Register in May would ban most firms from enforcing or signing noncompetes with their workers. However, two attorneys tell AIS Health, a division of MMIT, the rule may not go into effect as planned on Sept. 4 due to multiple appeals. Indeed, in a July 3 ruling that put the ban on hold for groups seeking to overturn it, a federal judge wrote that the challenge is "likely to succeed on the merits."
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