Earlier this week a federal judge from Texas struck down the Federal Trade Commission’s (FTC) proposed ban on non-compete agreements. The FTC’s ban was set to go into effect next month, but the court’s ruling blocks this from happening. (Click here for an earlier blog on the FTC ban.) The Court found that the FTC Rule was overly broad and the FTC exceeded its authority in enacting the ban. As a result, nationwide, non-compete agreements are still legal and enforceable obligations subject to each state’s specific laws on non-competes.
Going forward business owners must understand that enforceability and the legality of non-compete agreements vary significantly state to state. If you have any questions regarding non-compete agreements or would like to discuss other approaches to protect your interests, please feel free to contact either David Anderson or Doug Leavitt at Anderson Leavitt.
This entry is presented for informational purposes only and is not intended to constitute legal advice.