vention.The Federal Trade Commission (FTC) gave insight into the underlying rationale for the proposed rule on January 4, 2023, with its press release regarding legal action against three companies and two individuals to eliminate noncompete restrictions.Currently, the enforceability or unenforceability of a noncompete agreement varies by state.The earliest the FTC ban could take effect is Q3 2023.Compliance professionals should review current noncompete agreements against state law and consider including a reference to the FTC’s proposal within new agreements for the here and now (i.e., 2023).*John David Gardine is an Attorney with Bodman PLC in Grand Rapids, Michigan, USA.1 Federal Trade Commission, “FTC Proposes Rule to Ban Noncompete Clauses, Which Hurt Workers and Harm Competition,” news release, January 5, 2023, https://www.ftc.gov/news-events/news/press-releases/2023/01/ftc-proposes-rule-ban-noncompete-clauses-which-hurt-workers-harm-competition.2 Non-Compete Clause Rulemaking, 88 Fed. Reg. 3,482 (Jan. 19, 2023), https://www.federalregister.gov/documents/2023/01/19/2023-00414/non-compete-clause-rule.3 Federal Trade Commission, “FTC Cracks Down on Companies That Impose Harmful Noncompete Restrictions on Thousands of Workers,” news release, January 4, 2023, https://www.ftc.gov/news-events/news/press-releases/2023/01/ftc-cracks-down-companies-impose-harmful-noncompete-restrictions-thousands-workers.415 U.S.C. § 45.[View source.]
. No. 117-263, § 857(b). See, e.g., Automated Power Sys., Inc., 1993 WL 765651, at 4 (T.C.A.B. Nov. 22, 1993) (“Relief is given, not because the recipient is legally entitled to it[ ]; but because the United States will receive some benefit. Actions under 50 U.S.C. §§ 1431-1435 are not subject to the Contract Disputes Act, and Contract Disputes Act procedures are not followed; there is no legal right to a trial, to discovery, or to relief.”). See Pub. L. No. 117-263, § 822. Id. at § 822(c)(1). 50 U.S.C. § 1431(a) and (f)(2). Pub. L. No. 117-263, § 822(c)(2). See id. See id. at § 822(c)(3). 50 U.S.C. § 1431(a) (as modified). See id. at § 1431(c) and (d) (as modified). Pub. L. No. 117-263, § 822(e). Id. at § 822(b). Jim Garamone, Biden Signs National Defense Authorization Act Into Law, DoD News, defense.gov (Dec. 23, 2022), available at https://www.defense.gov/News/News-Stories/Article/Article/3252968/biden-signs-national-defense-authorization-act-into-law/. See Non-Compete Clause Rule, 88 Fed. Reg. 3,482, et seq. (Jan. 19, 2023). Id. Id. 88 Fed. Reg. at 3,501.
015 requires federal agencies to adjust their civil penalties for inflation no later than January 15 of each year, in order to ensure that civil monetary penalties for violations of federal law retain their deterrent effects and to further the policy goals of the underlying statutes. The adjustment is based on the annual cost-of-living adjustment multiplier; in 2023, that multiplier was 1.07745, resulting in an increase of 7.745% in the maximum civil penalties that can be assessed.The United States Fish and Wildlife Service (Service) is the agency within the Department of the Interior responsible for enforcing the ESA, BGEPA, MMPA, and Lacey Act. Its 2023 inflation adjustments for civil monetary penalties were published in the Federal Register on January 30, 2023, at 88 Fed. Reg. 5,796, and the Service’s adjusted penalties took effect on publication of the rule.The Department of Commerce published a list of inflation adjustments for all of the agencies within it on January 3, 2023, at 88 Fed. Reg. 3. That list includes adjustments to penalties assessed by the National Oceanic and Atmospheric Administration (NOAA), including penalties assessed by NOAA Fisheries (also known as the National Marine Fisheries Service) for violations of the ESA, MMPA, NMSA, Magnuson-Stevens, and Lacey Act.The Department of Commerce’s 2023 civil monetary penalty inflation adjustments were effective January 15, 2023, and apply to those penalties assessed by the Department of Commerce after the effective date of the penalty adjustment (but before the effective date of next year’s adjustments), including penalties for violations that predated the effective date of the adjustment.The adjustments for the laws listed in this post are below.U.S. Fish and Wildlife Service Adjustments:LawCitationType of ViolationMaximum Civil Monetary PenaltyBald and Golden Eagle Protection Act16 U.S.C. § 668(b)Any violation$15,662Endangered Species Act16 U.S.C. § 1540(a)(1)(1) Knowing violation of section 1538 (take prohibition