Remember last year when the Federal Trade Commission created a rule banning non-compete restrictions nationwide? There were lawsuits, lots of them. We watched and waited. With the September 4, 2024, effective date for the Federal Trade Commission (FTC) rule rapidly approaching, a Texas court shut it down on Monday. Big time. The court slammed the FTC for lacking statutory authority to make the rule and found the non compete rule to be “arbitrary and capricious”–judge speak for oh- no- you- don’t- FTC.
The FTC is grumbling but they do not have a real appeal to make. At this point, there is no federal authority banning non-compete restrictions in the workplace. Don’t exhale too fully–at the state level, non-competes have been limited or prohibited by courts and state houses for years. There are better ways to protect your business: We have been creating restrictive agreements that preserve, secure and safeguard your business, trade secrets, proprietary information, goodwill and employees.
Questions? We have answers. We can also review your current policies and non-compete language to get you in compliance. We can draft new documents that leave the risk of non-competes behind. We have a comprehensive fixed fee service of course! Now is a good time to get your protective policies and language in line. Contact us. We can help.