Federal Trade Commission building in Washington, D.C, on Jan. 12, 2022. Photo: Diego M. Radzinschi/ALM FTC's Noncompete Ban Could Encourage Mobility Among Legal Recruiters
Headhunting firms have used covenants to prevent their employees from leaving. Now these firms could become more vulnerable to poaching.
April 26, 2024 at 05:00 AM
5 minute read
Recruiting
What You Need to Know
- Lawyers are protected against noncompete agreements, but recruiters who place them have been involved in disputes with their former headhunting firms.
- Employment lawyers say recruiters could stand to gain mobility from the FTC's recent rule banning use of noncompete agreements.
- The FTC's rule has a broad definition for what qualifies as a noncompete agreement, covering restrictive covenants that inhibit an employee's mobility.
Over the years, prominent legal headhunting firms have squabbled with departed recruiters who allegedly violated restrictive covenants in their employment agreements through affiliations with rival recruiting shops. The geographic proximity of a recruiter's new firm and the amount of time before they started working for a competitor have given headhunting firms grounds to sue.
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