A Federal Court in Texas has blocked FTC's proposed non-compete rule nationwide, possibly delaying when the rule will go into effect. Read our analysis here: https://lnkd.in/gey6PXRC #antitrust
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Important update below
A Federal Court in Texas has blocked FTC's proposed non-compete rule nationwide, possibly delaying when the rule will go into effect. Read our analysis here: https://lnkd.in/gey6PXRC #antitrust
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🚨 FTC Non-Compete Rule Update: Courts Split! 🚨 This April, the FTC announced a rule banning most non-compete agreements, scheduled to take effect on September 4. However, courts are divided: a Texas court halted the rule, while a Pennsylvania court backed it. With September just around the corner, we could see this head to the Supreme Court. I’ll keep you updated as this unfolds! #LegalUpdate #NonCompete #FTC #EmploymentLaw #StayTuned
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The U.S. District Court for the Northern District of Texas issued a preliminary injunction against the Federal Trade Commission's Final Rule banning most non-compete agreements. The stay currently applies only to the parties involved in the case and the FTC's rule is still set to go into effect unless further court decisions alter the timeline. Click the link below to learn more about the injunction and how the FTC Final Rule banning non-competes affects you and your business. https://lnkd.in/e56tU9-q This update was written by JAH partners Patrick E. Kelly & David E. Stevens #noncompete #ftc #employmentlaw #jahlaw
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Non-compete ban is banned! Not surprised by this ruling and I think that Ruth Kraft has the right of it....."This case reflects only the opening salvo and not an ultimate outcome, save for its applicability to the rule as promulgated." Broad = Unlawful/Unenforceable....that being said, asymmetrical power does give employers incredible leverage over most employees as it pertains to non-competes. Most employees, even well compensated individuals, are justified in being concerned about pursuing their rights in court due to the cost of representation. While the act of signing a non-compete is willful, the use or, misuse, of said document by company can be capricious and malicious. What do you think? Do non-competes have a future or will it be NDA + nonsolicition?
Within the hour, Judge Ada Brown blocked the #FTC's #noncompete ban from going into effect on constitutional law grounds. Judge Brown concluded (and her stay last month certainly hinted that she would rule in this direction) that the FTC lacks the authority to promulgate the rule, making it unlawful. Additionally, she rejected the incredibly broad import of the rule, finding it arbitrary and capricious. Notably, by failing to specify the type of non-competes which should be banned and reaching for an all-encompassing ban, the FTC literally doomed its own efforts. It remains to be seen whether the agency will attempt to promulgate a more limited version of the rule as the presidential election nears but, to be honest, this was an unforced error on the part of the Commission. Nevertheless, to be enforceable, noncompete agreements should be carefully tailored to meet judicial scrutiny. This case reflects only the opening salvo and not an ultimate outcome, save for its applicability to the rule as promulgated. #noncompete #employmentlaw #FTC #administrativelaw Jeffrey W. Berkman Jeffrey Bass James Black
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Within the hour, Judge Ada Brown blocked the #FTC's #noncompete ban from going into effect on constitutional law grounds. Judge Brown concluded (and her stay last month certainly hinted that she would rule in this direction) that the FTC lacks the authority to promulgate the rule, making it unlawful. Additionally, she rejected the incredibly broad import of the rule, finding it arbitrary and capricious. Notably, by failing to specify the type of non-competes which should be banned and reaching for an all-encompassing ban, the FTC literally doomed its own efforts. It remains to be seen whether the agency will attempt to promulgate a more limited version of the rule as the presidential election nears but, to be honest, this was an unforced error on the part of the Commission. Nevertheless, to be enforceable, noncompete agreements should be carefully tailored to meet judicial scrutiny. This case reflects only the opening salvo and not an ultimate outcome, save for its applicability to the rule as promulgated. #noncompete #employmentlaw #FTC #administrativelaw Jeffrey W. Berkman Jeffrey Bass James Black
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Bob Hoffer breaks down the implications of a recent ruling from the U.S. District Court for the Northern District of Texas putting a temporary hold on the Federal Trade Commission’s (FTC) ban on noncompetes, originally set to take effect on September 4, 2024. Stay informed on how this ruling, and the evolving legal landscape, could impact businesses and employees alike. 🔗 https://lnkd.in/gz5Wfxhw #EmploymentLaw #NoncompeteAgreements #DBLLaw #LegalInsights
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BIG NEWS! Ogletree blog to follow.
Managing Shareholder of Ogletree’s Chicago Office, Strategic Advocate and Litigator for Businesses in Employment, Restrictive Covenant and Trade Secret Matters.
Breaking news - the FTC Non-Compete Rule is Dead by Summary Judgment Order in Texas! The court sums it up at the end of its written opinion. “Having concluded that (i) the FTC promulgated the Non-Compete Rule in excess of its statutory authority, and (ii) the Rule is arbitrary and capricious, the Court must “hold unlawful” and “set aside” the FTC’s Rule as required under [Section] 706(2)…. As the [Fifth Circuit] put in a couple of recent cases, setting aside an agency action under [Section] 706 has a “nationwide effect,” is not “party restricted,” and “affects persons in all judicial districts equally.” [citations omitted] Thus, the Court hereby holds unlawful and sets aside the Rule.” Watch out for more analysis from Ogletree’s Unfair Competion and Trade Secrets Practice Group. #ogletree #employersandlawyersworkingtogether
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Scheduled to become effective September 4, 2024, the FTC Non-compete Rule is in the courts, once again. In the article "Pennsylvania Court Upholds Non-Compete Ban", attorney Nichole Mooney reviews Judge Kelley Brisbon Hodge's decision which affirms the Federal Trade Commission possesses clear legal authority to establish rules aimed at preventing unfair competitive practices. This decision contradicts a District Court decision on July 3. Read more: https://lnkd.in/ew7KEqS8. #businesslaw #employmentlaw
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In a recent article for PartBNews, Chet Hosch weighed in on the district court's ruling that blocks the FTC's noncompete rule, what's next, and how businesses should operate in the uncertain interim. To learn more, visit: https://bit.ly/4eMzmVy #ResultsThatMatter
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I Assemble Boards of Growth-Minded Business Owners in metro Baltimore/Washington | Business Advisor & Business Strategist |Grower of Next Generation Leaders | Leadership Development | Executive Business Coach
Thanks, Russell Berger, Offit Kurman, GC and Employment Attorney, for speaking to TAB members this past month on the latest legal changes facing owners in Maryland. And, for sharing this hot off the press update! Have a read business owners, on the latest on non-competes and Russell's recommendation to consider non solicitation and confidentiality agreements to safeguard your company. #tabboards #noncompetes #business
General Counsel at Offit Kurman | Business Counsel | Employment Attorney | Overtime Lawyer
Yesterday, in a not all that surprising but anxiously awaited ruling, a federal court in Texas entered a nationwide injunction against the Federal Trade Commission's rule banning #NonCompetes. #Employers may continue to use non-compete provisions (consistent with state law) and should not send notices voiding non-competes. Despite this ruling, it can still be a practical challenge to enforce non-competes, especially as states continue to pass new laws limiting their impact. As a result, #businesses should still review their #RestrictiveCovenants generally to ensure that they are leveraging #Nonsolicitation, #Confidentiality, and other provisions to ensure adequate protection.
