Adams and Reese LLP’s Post

This is big news for employers and employees alike, and it eliminates (for now) the uncertainty being caused by the FTC’s nationwide ban on non-compete agreements that had been set to go into effect on Sept. 4.  However, the FTC will likely appeal this ruling, and it would not be surprising if this spurs renewed efforts at the state and federal levels to pass new legislation to further regulate non-competes. #FTC #noncompetes #NonCompeteBan #FederalTradeCommission #FTCRule

The FTC's nationwide non-compete ban is now on hold. Judge Ada E. Brown's preliminary injunction halts the rule set to take effect in September. Learn more about this development from Bill Egan. #EmploymentLaw #NonCompete

A Texas federal judge has issued a nationwide injunction blocking the implementation of the FTC's noncompete ban, which would have invalidated tens of millions of existing noncompete agreements and prohibited employers from entering into or attempting to enforce any new noncompetes. "We are pleased that Judge Brown vindicated what the AHA predicted when this unlawful regulation was first released — the 'only saving grace is that this rule will likely be short-lived, with courts almost certain to stop it before it can do damage to hospitals' ability to care for their patients and communities,'" AHA General Counsel and Secretary Chad Golder said in an Aug. 20 statement shared with Becker's. The FTC told Becker's it is "disappointed" in the court's decision, which does not prevent the agency from addressing noncompetes through case-by-case enforcement actions, but it is considering a potential appeal. #noncompete #ftc #employers #facilites #employees #contracts #attorneys #lawyers #brokers #advisors #consultants

The time has come for employers who rely on non-competition agreements to breathe a collective sigh of relief. Yesterday, a federal court in Texas set aside the FTC non-compete rule on a nationwide basis, declaring, “the Rule shall not be enforced or otherwise take effect on its effective date of September 4, 2024 or thereafter.”  For our latest update, click on the below link: https://lnkd.in/gp5u3JX9 #FTC #Noncompeterule #FTCnoncompeterule #restrictivecovenants #noncompetes

📢 Update on ATS Tree Services, LLC v. Federal Trade Commission 📢 As of July 24, 2024, a judge in the U.S. District Court for the Eastern District of Pennsylvania decided to side with the Federal Trade Commission in regard to the noncompete agreement ban. Read more below 👇 #FTC #Noncompete #EmploymentLaw #LegalUpdates #MyHRConcierge #Blog

BREAKING NEWS: The FTC has just voted 3-2 in favor of a federal ban on non-compete agreements for employees. Although the rule is expected to be challenged by the Chamber of Commerce and possibly Congress, it could affect approximately 30 million employees currently subject to non-compete agreements. Stay tuned for further updates on this developing story. #NonCompeteBan #FTC #EmploymentLaw

The FTC's non-compete ban was blocked nationwide by a Texas federal court ruling yesterday that the FTC exceeded its authority and the rule was arbitrary and capricious. As I commented in the The New York Times, businesses no longer need to comply with the rule by September 4 (when it was set to become effective), but there is continuing uncertainty as the fight now moves to the appellate courts. And regardless of what happens to the FTC’s rule, state lawmakers continue to scrutinize non-competes. It is still a good time for businesses to consider how best to future-proof their employee agreements against changing laws.  We are helping many businesses navigate the changing landscape and consider the array of options, in addition to non-competes, that can help protect a company’s legitimate interests when workers depart. https://lnkd.in/gS9Ufv5q #noncompete #FTC #antitrust #winstonantitrust

A Florida federal court is now the second court to rule that the FTC's proposed noncompete ban cannot be enforced. A full written opinion has not yet issued, but the minute order suggests the relief only applies to the employer that brought that particular suit. Learn more about Properties of the Villages, Inc. v. Federal Trade Commission and what employers should do to prepare to comply with the FTC's ban in the event it does go through in this Insight drafted by my FP colleagues, Jonathan Crook and Michael Elkon. https://lnkd.in/ey7aJqFa #noncompete #employment #compliance #FTC

Important update for employers and employees: a federal court has ruled that the FTC cannot enforce its ban on non-compete agreements set to take effect on September 4th. This means that, for the time being, existing non-competes remain in effect and employers may enter into new non-competes with employees. The federal court's ruling is likely to be appealed and this isn't the last we'll hear on this issue. #noncompete #noncompeteban #FTC https://lnkd.in/erdQA5B4

And there you have it. The FTC just announced a broad ban on #noncompete agreements. The final vote was 3-2. Here are the high-level terms: All noncompetes are banned going forward (i.e., no new noncompetes can be entered into) Existing noncompetes can only remain in effect for senior executives (not defined during the meeting) Existing noncompetes are unenforceable for all other workers, without any need for formal recession Employers must provide notice to employees whose noncompetes are no longer enforceable, with the FTC to provide model language The rule will take effect 120 days from the date of publication in the Federal Register Expect litigation to be filed tomorrow challenging this rule. I strongly believe that this rule is unlawful, far exceeds the FTC's authority, and will not survive court scrutiny. There are legitimate arguments on both sides of the noncompete debate, but the FTC simply does not have the ability to enact this remarkably broad rule that would void tens of millions of contracts and nullify laws enacted by the elected representatives of 46 states.