We wanted to share a significant update that may impact your business.
Generally, the Federal Trade Commission (FTC) had recently imposed a ban on non-compete agreements between employees and employers. This new ban would have prohibited agreements between employers and employees that seek to prevent an employee from competing against his employer, and it would have required employers to rescind all existing non-compete clauses, effective September 4, 2024. However, August 20th, a federal court in Texas issued a ruling that blocked the FTC’s new rule.
What This Means: The Court's decision limits the FTC's ability to enforce a ban on non-competes. However, the FTC has stated that they will continue to address non-competes through case-by-case enforcement actions, and it is crucial for business owners to understand how this may affect their liability in the future regarding non-competes.
At STBL, we are closely monitoring the situation to provide our clients with the most up-to-date information. We recommend that all SMBs and startup founders stay informed and consider how this ruling might affect their operations.
Please don't hesitate to reach out to our team if you have any questions or need further guidance on how this development might impact your business.