Last Updated on August 21, 2024

Legal Update:

U.S. Judge Strikes Down Ban on Noncompete Agreements as of August 20, 2024

On August 20, 2024, a federal judge in Texas barred the FTC’s noncompete rule. U.S. District Judge Ada Brown in Dallas, Texas stated that the FTC does not have the authority to ban practices that it deems as unfair methods of competition by adopting broad rules.

FTC spokesperson Victoria Graham mentioned that the agency was disappointed with the ruling, and is “seriously considering a potential appeal.” Although the decision to bar the FTC’s noncompete rule was made, the FTC can still address noncompetes on a case-by-case basis.

In This Episode:

Chris Cooley sits down with Bill Gault and Wendy Shelton of Nippes, Healy & Gault, PLLC to discuss the Federal Trade Commission’s Noncompete Rule.

Timestamps

• 1:01 – Summary of the FTC Noncompete Ruling.
• 7:56 – How does the employee notification requirement work?
• 9:49 – How to ensure you are properly enforcing the new ruling.
• 13:01 – Will this ruling be stayed and what will happen if it is stayed?
• 25:20 – State vs Federal Ban on Noncompetes.
• 30:18 – How to get in contact with MyHRConcierge and Nippes, Healy & Gault, PLLC.

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