The Supreme Court has issued its decision in Trump v. CASA, ruling that district courts generally lack the authority to issue nationwide, universal injunctions.
For employers, a key question arises: What impact does the CASA decision have on the FTC’s final rule banning the use of most noncompete agreements, which was set aside in August 2024 by the Northern District of Texas in the Ryan decision?
To view the full alert, visit the Faegre Drinker website.
Without a doubt, 2024 was a roller coaster of a year for employers in the area of noncompete law, from an FTC attempted nationwide ban on most noncompete agreements, to continued state law action seeking to narrow the use of noncompete provisions, to a growing number of court decisions revealing deep frustration by judges asked to enforce overbroad post-employment restrictions. Employers looking to protect confidential information and customer goodwill through the use of noncompetition or nonsolicitation provisions should stay abreast of state law developments and review existing agreements to ensure they are narrowly tailored to address judicially recognized protectable interests.
To view the full alert, visit the Faegre Drinker website.
On August 20, 2024, the U.S. District Court for the Northern District of Texas issued a memorandum opinion and order holding that the Federal Trade Commission rule banning post-employment noncompetes is “unlawful” and therefore must be “set aside.” This alert covers what employers need to know.
For the full alert, visit the Faegre Drinker website.
On August 15, another federal court weighed in on the question of whether the FTC exceeded its authority in issuing its rule banning post-employment noncompetes, scheduled to go into effect on September 4, 2024. In Properties of the Villages, Inc. v. Federal Trade Commission, Judge Timothy Corrigan (appointed by Pres. George W. Bush) of the Middle District of Florida enjoined the FTC from implementing or enforcing its noncompete ban against the plaintiff. Judge Corrigan declined to issue a more general, nationwide injunction.
For the full alert, visit the Faegre Drinker website.
In what some view to be a surprise development, the Eastern District of Pennsylvania issued a decision in ATS Tree Services v. FTC on July 23 affirming enforceability of the FTC’s Noncompete Rule, which designates most noncompete clauses as unenforceable after September 4, 2024. All eyes now turn to the Northern District of Texas, where the Ryan v. FTC court has promised a final decision on or before August 30. Most expect that the Ryan court’s final decision will continue to hold that the FTC did not have authority to issue the Final Rule, creating a split of authority.
To view the full alert, visit the Faegre Drinker website.
2023 proved to be a very busy year for those monitoring developments in the area of noncompetition law. We highlight 10 major state and federal developments from 2023 in the area of employee noncompetition law, including increased state and federal efforts to outright ban their use.
To view the full alert, visit the Faegre Drinker website.