Greenbaum, Rowe, Smith & Davis LLP’s Post

Something every employer and employee should know

Just watched the FTC vote -- 3-2 in favor of banning all noncompetes, effective 120 days after the rule is published in the Federal Registrar. Interestingly, they carved out existing non-competes with "senior executives" (hopefully that's defined in the rule). All other existing noncompetes are unenforceable - no need for formal rescission; employers must provide notice (FTC to provide model language.) Stay tuned -- litigation over the FTC's power to do this certain to immediately follow. (Anyone else think of Eminem every time they say the word F.T.C. with that certain cadence (you will now!)) #DuaneMorris #employmentlawyer #enddiaperneed

Important update below on the FTC rule banning noncompetes.

The FTC Non-Compete Ban is set to take effect in less than three weeks (September 4), and it is looking increasingly unlikely that a court will vacate or enjoin the rule on a nationwide basis before the effective date. That means employers must start thinking (if they haven’t already) about three key questions: 1. What should the required notice to current and former employees say? The FTC has a model notice, but it may not work for some or all employers—I have strong opinions on this. 2. How, if at all, should the company revise template restrictive covenant agreements containing non-competes? Sure, employers could just delete the non-compete provision, but there are other (better?) options. 3. Are there other template agreements, letters, or forms, that need to be revised because they reference noncompete provisions/agreements (e.g., severance agreements, offer letters, equity agreements and plans, post-employment obligation reminder letters, etc.)? There is a lot of work to be done by September 4. Do not wait until Labor Day to think about these questions. #FTC #NonCompeteBan #EmploymentLaw #Compliance

Here are 3 things employers can do to prepare for the FTC's Noncompete Clause Final Rule, which goes into effect on September 4. Mike Houde, Esq. of Goodell DeVries explains key points of the Final Rule as well as the steps employers can take to ensure compliance. https://hubs.ly/Q02zvGwr0 #employmentlaw #noncompetes

here’s our legal alert on what the FTC final rule on noncompetes does, what it doesn’t, and what employers should do while waiting for the court challenges  https://lnkd.in/gCMrgxQi

I handle restrictive covenant and trade secret cases throughout the US. The case law varies (significantly) by state. Lots of chatter after a federal judge in Texas struck down the FTC’s ban on non-competes yesterday. This ruling strikes (for now) the ban nationwide and it will not go into effect on Sept. 4. Of course, this issue will be litigated through the appellate system. Curious to see the initial ripple effects. Will we see an uptick in non-compete cases that employers had put on hold while waiting to see if the ban went into effect? How many employees jumped ship in the past several months thinking they had bullet-proof protection under the FTC’s new ban only to find out that’s not the case?

UPDATE!! The FTC non-compete rule has been blocked NATIONWIDE by a federal court in Texas. It will not go into effect on Sept 4. The court held that the FTC lacked authority to issue the non-compete rule and that the rule was arbitrary and capricious. The FTC may try to challenge the court’s ruling, but for now, companies can continue utilizing lawful non-competes. #ftc #noncompete #nationwide #employmentlaw #hrlaw

New Personnel Files blog post by Bridget McConville: Non-Competes: Where Are We Now? On August 20, a federal judge in the Northern District of Texas blocked the Federal Trade Commission’s (FTC) rule banning non-competes. The rule, which would have rendered most non-compete agreements unenforceable and required employers to notify employees and former employees that their agreements were no longer enforceable, was set to go into effect on September 4, 2024. Read the full blog post here: https://ow.ly/9Xot50Teo2s #MJEmploymentLaw #MJLaborLaw #WomenofMJ

We are keeping a close eye on this one! By August 30, we should know whether the FTC non-compete rule will be blocked and the scope of the block. If it’s not blocked, the rule becomes effective just after Labor Day weekend. #ftc #noncompete #noncompeteban #finalrule