Eric Hoplin’s Post

🏛 NAW commends yesterday’s federal court decision to block the Federal Trade Commission’s (FTC) attempt to impose a nationwide ban on non-compete agreements. This ruling, which prevents the ban from taking effect in September, is a critical check against blatant regulatory overreach by the FTC. Eric Hoplin, NAW President & CEO, released the following statement: “This decision is a victory for common sense and the proper limits of regulatory authority. The FTC has no business telling companies what tools they can or cannot use to protect their businesses and employees. At NAW, we are committed to fighting such overreach, which is why we recently launched the NAW Legal Policy Center. The amicus brief we filed, which played a key role in this outcome, was one of our first major initiatives under the center’s banner." Click here for our full statement: https://lnkd.in/gG9vFt7d

With the Federal Trade Commission implementing "the final rule" banning non-competes, businesses with sensitive intellectual property must look for alternative measures to safeguard it. Burr's Corky Klett (with assistance from law clerk Olivia Lane) discusses the ruling, the hopes of this increasing future reliance on non-disclosure agreements, and more in a recent article featured in the ACC South Carolina - Association of Corporate Counsel. To learn more, visit the link below. https://bit.ly/3Vz28kd #ResultsThatMatter

Court Issues Injunction on FTC Non-Compete Ban: "On August 20, 2024, Judge Ada Brown of the U.S. District Court for the Northern District of Texas issued a permanent injunction setting aside the Federal Trade Commission’s final rule banning non-compete agreements in Ryan LLC v. FTC." FTC ban was set to take place on September 4, 2024. "...[C]ompanies may lawfully continue their historical practices with respect to non-compete covenants while the nationwide injunction is in effect." "In light of the risks outlined above (see link below for entire article), however, it remains prudent for companies to consider alternative means of protecting confidential information, trade secrets, business relationships and goodwill, including through appropriate confidentiality and non-solicitation covenants." https://lnkd.in/eSiSXTYf

Comments must be received on or before April 30, 2024: The Federal Trade Commission (FTC or Commission) requests public comment on its proposal to amend the trade regulation rule entitled Rule on Impersonation of Government and Businesses (Impersonation Rule or Rule) to revise the title of the Rule, add a prohibition on the impersonation of individuals, and extend liability for violations of the Rule to parties who provide goods and services with knowledge or reason to know that those goods or services will be used in impersonations of the kind that are themselves unlawful under the Rule. The Commission believes these changes are necessary and such impersonation is prevalent, based on all comments it received on the Rule and other information discussed in this document. The Commission now solicits written comment, data, and arguments concerning the utility and scope of the proposed revisions to the Impersonation Rule. https://lnkd.in/egMtV-kB

 The US Federal Trade Commission on Tuesday voted to bring in a broad ban on non-compete agreements. This may be good news for many employees but it has infuriated business owners and sharply divided opinions among the legal community. Two lawsuits have already been filed against the rule. Regardless of their outcomes, the ban’s looming imposition heralds a period of uncertainty for trade secret owners attempting to use non-compete clauses as a way to enforce their IP rights. 🎤 “We foresee much uncertainty and turbulence in the near future,” David Pardue of Parker Poe told IAM. 🎤His colleague Erik W. Weibust of Epstein Becker & Green says the rule is “arbitrary and capricious due the FTC's reliance on cherry-picked academic studies and surveys”. 🌴 In the meantime, in California, where non-competes have been banned historically, Carolyn Hoecker Luedtke of Munger, Tolles & Olson has a list of useful tips for employers in preparation for a future without non-competes – in case the rule survives the legal challenges. #FTC #noncompetes #ban #TradeSecrets #EmployeeContracts #US #ChamberofCommerce 

On August 20, 2024 the federal district court for the Northern District of Texas struck down the Federal Trade Commission’s ban on non-compete agreements, which was set to take effect on September 4, 2024. The court had previously granted relief from the FTC rule only for the plaintiffs in Ryan LLC v. Federal Trade Commission.... Continue Reading #wisconsinlawyer #wisconsinlaw #wislawnow

🚨 Major Update from Texas! A federal judge has struck down the FTC's anticipated ban on non-compete agreements, which was set to take effect on Sept. 4, 2024. Judge Ada Brown ruled that the FTC exceeded its authority with this broad prohibition, calling it arbitrary and lacking justification. Non-compete agreements are common in the U.S., and while the FTC argues they limit competition unfairly, opponents worry about protecting proprietary information. This ruling could influence similar cases in Florida and Pennsylvania, and may eventually reach the Supreme Court. Stay tuned for further developments! #NonCompete #FTC #LegalUpdate #TexasLaw #BusinessLaw #EmploymentLaw #CourtRuling #LegalNews http://dlvr.it/TFXqdt

In yet another blow to executive agency authority in this administration, a federal judge in Texas granted a preliminary injunction on implementation of the U.S. Federal Trade Commission’s near-total ban on noncompete agreements to consider whether the FTC ban is an overreach by the executive branch. This country was founded on principles such as the separation of powers and checks and balances in our government. When the government tries to legislate through executive fiat, the judicial branch has the opportunity to review these agency actions and determine whether Congress actually delegated this authority to the executive branch. It has taken time for this and other cases to work their way through the judicial process, but the courts are starting to agree that this administration has been improperly encroaching on the rights of businesses. There are those that may ultimately disagree with federal court decisions as of late, but this is our Constitution at work. The case is Ryan LLC et al. v. Federal Trade Commission, case number 3:24-cv-00986, in the U.S. District Court for the Northern District of Texas. May you all have a happy and safe July 4th! #constituional law #executive fiat #federalcourts #indpendenceday

🚨 Major Update from Texas! A federal judge has struck down the FTC's anticipated ban on non-compete agreements, which was set to take effect on Sept. 4, 2024. Judge Ada Brown ruled that the FTC exceeded its authority with this broad prohibition, calling it arbitrary and lacking justification. Non-compete agreements are common in the U.S., and while the FTC argues they limit competition unfairly, opponents worry about protecting proprietary information. This ruling could influence similar cases in Florida and Pennsylvania, and may eventually reach the Supreme Court. Stay tuned for further developments! #NonCompete #FTC #LegalUpdate #TexasLaw #BusinessLaw #EmploymentLaw #CourtRuling #LegalNews http://dlvr.it/TFGqr7

A Texas federal district court temporarily stayed the FTC’s Non-Compete Rule in Ryan LLC v. Federal Trade Commission as applied to the Plaintiff and the Plaintiff-Intervenor organizations (but not the members of those organizations). Learn more about this decision's key elements and other important takeaways from our Buchanan experts. #FTC #NonCompeteAgreements #Antitrust #EmploymentLaw #IP #Tradesecrets