If The FTC Ban On Non-Competes Is Not Enjoined, What Is Your Company's "Plan B"?
Background: The Federal Trade Commission (FTC) issued an extremely broad Final Rule banning most non-competes. As expected, there have been multiple court challenges to the Final Rule, but, to date, no court has issued a nationwide injunction preventing the Final Rule from going into effect, as scheduled, on September 4, 2024. Judge Ada Brown of the Northern District of Texas has indicated, however, that she intends to issue a decision on the merits on or before August 30, 2024. The Final Rule includes language requiring that employers provide an individualized notice to each worker subject to a non-compete prohibited under the Final Rule . According to the Final Rule, these notices must state that the employer will not enforce the prohibited non-compete and that it is illegal. With no injunction currently in place, employers need to start assessing whether this notice requirement applies to their contracts so they are ready in the event that Judge Brown decides ...