The Fate of Non-Compete Clauses: Texas Judge Blocks FTC’s Nationwide Ban

A recent ruling by a Texas federal judge has blocked the Federal Trade Commission's (FTC) attempt to ban non-compete clauses for most workers. On August 20, 2024, the judge decided that the FTC had exceeded its legal authority by trying to implement a rule prohibiting non-compete agreements, which was set to take effect in September. As a result, the FTC cannot enforce this rule nationwide, allowing employers to continue using non-competes, though they must still comply with state and local laws.

Employment Agreement, Executive Agreement, FTC, Texas

News

July 2, 2024

Non-Competes and End Runs Around Non-Competes

The Federal Trade Commission (FTC) has issued a final rule barring most existing and future non-compete agreements. Traditionally businesses have tried to use non-compete agreements to prevent the unauthorized disclosure or misuse of proprietary business information (such as trade secrets). In light of these developments, businesses are encouraged to explore alternative ways of protecting their sensitive information, such as strengthening intellectual property rights through patents, trademarks, copyrights, and nondisclosure agreements (aka: NDA’s) as viable substitutes for traditional non-compete agreements

Employee Agreements, Executive Agreement, FTC, Non-Compete

News

April 30, 2024

FTC’s Final Rule Bans Non-Competition Agreements

On April 23, 2024, the Federal Trade Commission (“FTC”) finalized a rule that bans virtually all non-competition agreements between a business and their “workers” (more about what a “worker” is below). The new rule would prohibit businesses from restricting a worker’s ability to work for competitor following the worker’s separation from the business.

Agreements, Employment Agreement, Executive Agreement, FTC

News

January 17, 2023

FTC’s New Proposed Rule: Will Non-Competes Be No More?

On January 5, 2023, the Federal Trade Commission (“FTC”) published a proposed rule that would ban employers from imposing non-compete clauses with employees (“Proposed Rule”). If adopted, it will make it easier for employees to switch jobs and will impact employee compensation structure and the protection of confidential information.

Business, Federal Trade Commission, FTC, Non-Compete

Tag: FTC

The Fate of Non-Compete Clauses: Texas Judge Blocks FTC’s Nationwide Ban

Non-Competes and End Runs Around Non-Competes

FTC’s Final Rule Bans Non-Competition Agreements

FTC’s New Proposed Rule: Will Non-Competes Be No More?

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