While the FTC’s noncompete ban is still scheduled to go into effect on September 4, 2024, there are three ongoing legal challenges to it; and there are pending motions in all three cases that could enjoin it either nationwide or on some limited basis before then. In the meantime, employers may wonder what to do. We outline several options.
To view the full alert, visit the Faegre Drinker website.
The FTC’s Rule banning noncompete agreements against the plaintiffs in Ryan LLC v. Federal Trade Commission has been enjoined. The court’s order signals a tough road ahead for the FTC’s Rule on a nationwide scale, although a second order is due by the end of July in a separate case. Nevertheless, employers should be aware of increasing judicial scrutiny and legislative limitations of restrictive covenants.
To view the full alert, visit the Faegre Drinker website.