Riley Safer Holmes & Cancila LLP’s Post

My latest on the cases challenging the FTC’s noncompete ban and what employers can be doing now to prepare! #employmentlaw #noncompete

We now have split decisions from two courts in the FTC non-compete ban saga: a decision enjoining the FTC's non-compete rule but only as to the parties in the Ryan matter (N.D. Tex.) and another declining to issue a nationwide injunction in the ATS Tree Services matter (E.D. Pa.). The Ryan court is expected to issue a final decision on the plaintiffs' request for a nationwide stay of the non-compete ban by August 30. In our latest article, Brodie D. Erwin and I discuss steps all businesses with non-compete agreements should be taking to prepare for the potential effectiveness of the FTC's rule on September 4.

A Texas federal court has postponed the effective date of the Federal Trade Commission (FTC) rule banning noncompete agreements.  Read more about the latest status on the FTC ban #brightmine

 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 

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

[Client Insight]: A federal judge has halted the Federal Trade Commission's ban on post-termination noncompetition agreements, but only as it pertains to the named parties in the case. In Ryan LLC v. FTC, the court preliminarily found that the FTC exceeded its statutory authority in promulgating the noncompete ban, because Section 6(g) of the FTC Act does not grant the FTC substantive rulemaking power for unfair methods of competition. Read the full insight here. #employment #noncompete #FTC #GundersonInsight https://lnkd.in/gnCBUnGA

On July 3, the U.S. District Court for the Northern District of Texas issued a limited stay and preliminary injunction of the Federal Trade Commission's final rule making unlawful virtually all non-compete agreements. Read Kirsten Eriksson's new blog post to learn more about the details (and limits) of the ruling as well as its context in the broader #employmentlaw landscape. https://lnkd.in/e6hK9BZ2 #noncompetes #laborlaw #FTC

A Texas federal district court issued its decision on July 3, temporarily staying the FTC’s Non-Compete Rule in Ryan LLC v. Federal Trade Commission as applied to the Plaintiff and the Plaintiff-Intervenor organizations only (not the members of those organizations). Click the link below to learn more about this decision's key elements and other important takeaways. #FTC #NonCompeteAgreements #Antitrust

A Texas federal district court issued its promised decision on July 3, temporarily staying 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) only. Learn more about this decision's key elements and other important takeaways. #FTC #NonCompeteAgreements #Antitrust #EmploymentLaw

A Texas federal district court issued its promised decision on July 3, temporarily staying 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) only. Learn more about this decision's key elements and other important takeaways. #FTC #NonCompeteAgreements #Antitrust #EmploymentLaw