Breaking Down Non-Competes: What the FTC's New Rule Means for Employers and Employees

PS: The day that we released this podcast, a federal judge in Texas on Tuesday barred a US Federal Trade Commission rule from taking effect that would ban employers from requiring their workers to sign non-compete agreements. So f you were preparing to comply with the FTC’s ban by the September 4th deadline, you can now put those plans on hold. It’s likely that the 5th Circuit Court of Appeals or even the Supreme Court will have the final say, but given their current makeup, the outcome probably won’t change.

However, the issue of non-compete agreements isn’t going away.

Why? Several states already ban them for all employment, and many others (plus D.C.) have restrictions based on income. But for now, any attempts to eliminate all non-competes through administrative action are effectively dead.

 

Wendy and JC as they dive into the hot topic of non-compete agreements. In this episode, they discuss the latest updates from the U.S. Federal Trade Commission (FTC), which issued a regulation banning most non-compete agreements effective September 4, 2024.

Wendy and JC explore the implications of this rule, the ongoing litigation challenging the FTC's authority, and the potential impact on employers and employees. They also provide insights into alternatives like non-solicitation agreements and the importance of consulting legal counsel to navigate these changes.

Whether you're an employer worried about retaining talent or an employee wondering about your non-compete clause, this episode offers valuable information and practical advice. Don't miss out on this crucial discussion!