Atlanta, GA asked in Employment Law for Virginia

Q: With the new FTC ruling, can I recoup the costs a lawsuit cost me with breaking a non-compete agreement from an employer

Breaching the non-compete ended up costing close to $50K in settlement and legal fees back in 2017. I worked for the employer and then left to go start my own business that competed with them in government contracting. With the FTC ruling that non-competes are unfair and unenforceable I would like to recoup this lost money, if able.

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1 Lawyer Answer

A: No. Assuming the new FTC rule does go into effect in its current form, the current version of the rule expressly states "The requirements of this part 910 do not apply where a cause of action related to a non-compete clause accrued prior to the effective date."

Since your breach of your non-compete occurred back in 2017, the new rule does not apply.

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