ConsultStu

FTC Non-Compete Ban is Blocked, Will Not Go into Effect

Much to the relief of many employers, a Texas court entered an order blocking the Federal Trade Commission’s (FTC) non-compete ban on a nationwide basis. On August 20, the court blocked the non-compete ban from going into effect on September 4. The judge concluded that the FTC lacks the authority to promulgate the non-compete rule and that the rule is arbitrary and capricious. So, for now, the rule can not be enforced or otherwise take effect.

What do employers need to know?

Employer non-compete agreements will continue to be effective as long as they comply with state law.
Other federal agencies, including the National Labor Relations Board (NLRB). continue to attack non-competes and will attempt to block employers from enforcing agreements that restrict employees’ actions during or after employment.
Florida employers need to review its statute (542.335 – Valid restraints of trade) that addresses permissible restrictions, such as non-competes, and employers should review their existing agreements based on these standards.
In case the FTC regulation is allowed to go into effect, employers can prepare an alternative agreement that protects trade secrets, confidential information, non-solicitation of clients and the non-raiding of employees. These protections were not impacted by the FTC non-complete ban.

Does Florida law allow employers to put non-compete restrictions on employees? Yes, but it says that any person seeking enforcement of a restrictive covenant in Florida must be able to prove the existence of one or more legitimate business interests justifying the restrictive covenant. The interests include: (1) trade secrets, as defined by FL law,\; (2) valuable confidential business or professional information that otherwise does not qualify as trade secrets; (3) substantial relationships with specific prospective or existing customers, patients, or clients; (4) customer, patient, or client goodwill associated with an ongoing business or professional practice; (5) a specific geographic location; (6) a specific marketing or trade area; and (7) extraordinary or specialized training. Read more in a Florida Bar article on non-competes.

HR Categories

1095C form 300 Log 401(k)8(a)(1)Accommodation Affordable Care Act Americans with Disabilities Act Arbitration ARPA Audits Background screening Bilingual Bonuses Business Expenses Cannabidiol (CBD)CDC CDL CFPB charity Child labor CHIP Notice Christmas party Clearinghouse COBRA Commercial Motor Vehicle Driver Company Culture Company Property Compensation Compliance Concerted Activity CONNECT Construction consultstu Consultstu Team Contagious disease Coronavirus Craft Beer Department of Labor Direct Threat Disabilities Discrimination DOT Downsizing and Restructuring Dress Code Drivers Drug and Alcohol Drug Free Workplace E-Verify EEO-1 Form EEOC Employee benefits Employee Handbook Employee Illness Employee Injury Employee Misconduct Employee Policies Employee Recognition Employee Referral Employee Rights Employment Poster ERISA Essential functions Executive Order Exempt Employee Exit Interview Fair Credit Reporting Act Fair Labor Standards Act Fall Protection Federal Contractors FFCRA Financial Well-being Firearm Fitness for Duty Florida rules Fluency FMCSA FMLA Form 5500 Form W-4 Fractional HR FTC Gender Non-conformity General HR Questions Goal Setting GPS Group Health Insurance Harassment Hiring Holidays HR Compliance HR Costs HR Resources HR software HSA Human Resources Human Trafficking I9 Form Immigration Independent Contractor Individualized Assessment Injury Statistics Insurance Interviews Investigations IRS ITA Job Description Job Post Joint Employer K1 Leave of Absence Leaving a PEO Management Manager Medical Exams Medical Marijuana mental health Military Appreciation Minimum Wage Morale National Origin New Hire NLRB No-match letter Non-complete Agreements Onboarding Opioids OPT OSHA Outplacement Overtime Paid Leave Pay Cards Pay or Play Paycheck Protection Program Payroll Payroll Protection Program Performance Improvement Plan Performance Review Personnel File Post offer medical questionnaire Posters Pregnancy Publix Immigration Certification Reasonable Accomodation Recall Letter Record Keeping Recruiting Religion Remote employees Restaurants Resume Retaliation Retention Retirement Rewards Risk Management Safety Salaried employees SBA Section 7 Rights Self Appraisal Sick Leave SMART goals Social Media Social Security card Start up Taxes Temporary Employee Termination Tipped Employees Title VII TPD Benefits Training Unemployment Uniforms USCIS Vaccines Volunteer W2 W4 Wage and Hour Wellness program Work from Home Workers Compensation Workplace Monitoring Workplace Violence Wrap Plans

Show All Categories

Show Less Categories