So, Noncompetes Aren’t Banned?
Here are the big takeaways for employers:
- While the rule is blocked, you can still enforce valid non-compete agreements
- You don’t have to send notices to current and former employees who have noncompete clauses
- Already sent notices? Get legal advice regarding how and if you can retract them
- This decision is temporary; the legal battles are still ongoing, and what you’re required to do may change again by the time everything is said and done
- Local and state laws are still in effect regarding noncompete agreements
Why Did Judge Brown Block the Ban?
Quite simply, the judge thought the FTC went too far. That it didn’t actually have the authority to create such a rule in the first place.
Unsurprisingly, the FTC is sending pretty clear signals that it intends to appeal, which is why we keep reminding you to pay attention. This thing is like watching a tennis match where you might get smacked by the ball if you’re not looking.
As always, we’re here for any questions you have on noncompetes or any other compliance issues.
