On April 12, 2023, Franchise Time’s Legal Eagles Allison Grow Ryan and Aaron-Michael Sapp provided the Regulatory Watch update during this year’s Franchise Times Virtual Summit. Their discussion included the following topics:

• The Federal Trade Commission (FTC) recently proposed a blanket ban on post-termination noncompetition covenants in all employment agreements. How would the ban, as proposed, impact the franchising industry? And will the FTC propose a ban on noncompetition covenants in franchise agreements next?
• The FTC also recently issued a request for information on a broad range of issues relating to the franchisor-franchisee relationship, including joint employment liability. Why is the FTC examining these issues and what could this mean for your brand?
• The National Labor Relations Board will soon issue a revised test for determining joint employment status under the National Labor Relations Act. How is the test likely to change and what does this mean for other joint employment standards?
• What’s the latest in state legislatures like California? Is the highly publicized FAST Act going to go into effect? And what proposed laws at the state level should brands keep an eye on?

To view a recording of Allison and Aaron-Michael’s discussion on these topics and more, please click here.