Venable LLP’s Post

In a victory for employers, The U.S. District Court for the Northern District of Texas has struck down the FTC’s blanket ban on noncompete agreements, which was set to take place on September 4 nationwide. Despite the ruling, existing state laws governing non-compete agreements stay in place. However, the FTC and state Attorneys General may continue to challenge overly broad non-compete agreements, particularly in egregious cases, even as these agreements remain legally permissible in some states. Hence, Companies should evaluate their use of non-competes to ensure compliance with state laws and protect legitimate business interests. #legalframeworks #employmentlaws #noncompetes https://lnkd.in/gEZzvTCP

Is compliance with the FTC’s noncompete ban optional for employers? Attorney Erik W. Weibust discusses strategies for both risk-averse and risk-tolerant businesses in light of two contrasting federal rulings, in Law360. #NonCompetes #EmploymentLaw #HumanResources

Non-compete clauses remain what they were pre April 23, 2024, and have not been banned nationwide! Yesterday marked what was to be the end of non-competes everywhere. HOWEVER, on August 20, 2024 a federal judge conclusively struck down the FTC's total ban on non-competes. Bans on non-competes still exist in select cities and states. Please see the article below.

Earlier this week, the FTC ban on noncompete agreements was overturned nationwide by the U.S. District Court for the Northern District of Texas. The Court found that the Rule was overbroad and lacked a "reasonable explanation" for its issuance. Partner Peter Spanos goes into more detail in his latest insight. Read his full insight below. #LegalNews #EmploymentLaw #FTC #NonCompete https://lnkd.in/eAZvZ-qi...

The FTC's new rule banning most non-compete agreements has been under scrutiny for the past several months. Recently, a United States District Court in Texas put a temporary hold on the rule for a limited number of employers. Meanwhile a Pennsylvania court will decide if the ban can still go into effect nationwide: the final rule is still set to take effect on September 4, 2024, unless the Pennsylvania court says otherwise. This evolving area of law is complex. Our team at KW Brockway is here to help you navigate these changes and determine if non-compete agreements are still right for your business. Contact us for expert guidance. #LegalUpdate #NonCompete #FTC #EmploymentLaw #KWBrockway #BusinessLaw #Injunction #StayInformed

Pass it on. Very comprehensive and essential breakdown of the grand shift in policy banning noncompetes. Keep in mind that there are plenty of related contract terms that do not fall within the scope of a noncompete that can satisfy a similar protection for businesses, provided that it does not create a de facto noncompete situation. Doom and gloom? This may cause a slowdown in innovation, as companies will be reluctant to open their inner sancta to a larger base of employees. This may have a deleterious effect on advancement, particularly for more marginalized groups in the workplace, as access to trade secrets and other higher level concerns won't be made available. Competitors can just stand by and wait for the inevitable employee churn to copy off their papers. I've been a bigger fan of labor tactics to get employees to improve their situations. The "take my ball and go" approach doesn't seem to be optimal. What do you think?

🚨 Breaking Legal Update: On August 21, 2024, a federal judge in Texas ruled against the FTC’s proposed ban on non-compete agreements, citing the agency's lack of authority. This decision is a significant win for employers, reaffirming their ability to enforce non-compete clauses. #LegalUpdate #NonCompete #FTC #EmploymentLaw

Thanks Kevin D. for this write up!

In a major ruling, a Texas federal judge has overruled the FTC’s nationwide ban on non-compete agreements. This decision keeps non-competes enforceable in many jurisdictions, but the legal battle is far from over. Employers, make sure your agreements comply with state laws, and employees, be aware of your rights. Stay informed as the landscape continues to evolve. Need advice? We’re here to help. Contact us at team@lengealaw.com for personalized guidance on this critical issue. Read more: 🔗 https://lnkd.in/e5SpvuGZ #LegalNews #NonCompete #EmploymentLaw #LengeaLaw

🚨 BREAKING NEWS! A court just struck down the ban on non-compete agreements that was set to take effect just two weeks from now, meaning employers across the country can maintain non-competes as their state laws allow. Our team pulled together a review of the decision and a 4-step practical game plan for employers (link below), which includes: 📍 Recalibrate now that we're back at status quo after nearly 2 years of uncertainty ✏ Use Blue Pencil Box to keep track of state laws 💥 Prepare for the FTC to take aggressive action through enforcement activity 🗃 Create an inventory of all existing restrictive covenant agreements Thanks to Jonathan Crook, Michael Elkon, Risa Boerner, and MICHAEL GRECO for pulling this together! #BreakingNews #NonCompeteAgreements #EmploymentLaw #HRCompliance #LegalUpdate #WorkplaceLaw #EmployerGuidance #FTCEnforcement #RestrictiveCovenants #LegalInsights #FTC #NonCompetes