On August 20, 2024, a federal judge blocked the Federal Trade Commission’s (FTC) ban on non-compete agreements from going into effect. As a result, employers are not required to take steps to comply with the FTC ban. The FTC’s ban would have invalidated nearly every non-compete agreement nationwide. In addition, it would have required employers to notify employees with existing agreements by September 4, 2024, of the new rule.

The FTC still has the ability to appeal this decision, but it is unlikely that any appeal would allow the rule to go into effect by September 4. It could take months, or even years, for the case to end up in front of the U.S. Supreme Court.

Although this rule has been blocked, employers must still comply with local non-compete laws that are already in place. Over the last several years, many states have enacted bans or further restrictions on non-compete agreements.

At The Employer Group, we help clients navigate the complex landscape of employment law. Contact us if you have questions or concerns about current non-compete agreements you have in place!

 

 

This information does not constitute legal advice.