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Are you wondering what’s been happening with the court challenges to the FTC’s final rule banning non-competes? Last week, a Texas federal court stayed enforcement of the FTC’s non-compete ban, but here’s the wrinkle: for now, the stay applies only to the parties in that particular case & does not extend to other employers nationwide. Nevertheless, the decision likely signals the downfall of the FTC’s rule. Read more here: https://lnkd.in/eninNEsQ

Today saw a big decision on the FTC's rule banning non-compete agreements. A Texas federal district court issued a preliminary injunction holding that: (i) the rule likely exceeds the FTC's congressional authority under the FTC Act; and (ii) the FTC's rulemaking was likely arbitrary and capricious. Although the injunction is limited to the parties in the case (not nationwide), it signals that the FTC rule will likely be stricken down before it goes into effect. A final decision on the merits is expected in August. Regardless of the ultimate outcome of the FTC rule, employers should review their restrictive covenants agreements and give careful consideration to the types of business protections they implement. Non-competes are just one of many tools available to employers to protect their business--and they are not always needed for all employees or in all industries. https://lnkd.in/grXrbVux

Following the FTC ban on non-competes, Texas employers and employees may wonder, "How will this new rule affect me?" Before the FTC can enforce the rule, it must publish the final version in the Federal Register, which contains all government agencies' rules and regulations. The final rule will go into effect 120 days following publication in the Federal Register, likely in September 2024. That said, legal challenges have already been filed. Within hours of the FTC vote, global tax services firm Ryan filed a lawsuit in the Northern District of Texas, seeking to "prevent the immense, undue burdens the FTC’s rule would impose on service-driven companies of every size nationwide." One day later, the U.S. Chamber of Commerce filed a complaint against the FTC in federal court, requesting an injunction to stop the agency from enforcing the #noncompete rule. The U.S. Chamber called the ban “not only unlawful but also a blatant power grab that will undermine American businesses’ ability to remain competitive.” If the courts grant an injunction while the validity of the ban is determined, it could be many months before the rule becomes effective. If the FTC rule is struck down, legal oversight of non-compete agreements would revert to state law. How does the FTC ban affect Texas businesses? For now, employers can keep using non-compete agreements in Texas but should prepare to adjust their practices if the legal challenges are resolved and the final rule becomes official. "For our corporate clients, we’re still encouraging them to assess whether non-competes are something that they want to keep in place," says Raymond Panneton, business attorney and shareholder at Hendershot Cowart P.C. This article reviews what Texas businesses and their employees need to know about the FTC non-compete ban, key exceptions to the rule, and alternatives to non-compete agreements employers can use now to protect confidential information: https://lnkd.in/gP8Sd__B #businesslaw #SMBtips #Texasbusiness #Texasattorney

Earlier this year, the FTC issued a rule banning most noncompete agreements. The effective date of the noncompete rule is September 4. On the same day that the FTC announced the noncompete rule, Ryan LLC, a Dallas-based tax advisory firm, filed a lawsuit in the U.S. District Court for the Northern District of Texas challenging the rule, asking the court to stay the effective date of the rule and seeking an injunction against the FTC’s enforcement of the ban. The U.S. Chamber of Commerce, Business Roundtable, Texas Association of Business and Longview Chamber of Commerce subsequently intervened in the lawsuit, seeking the same relief against the FTC. ? On July 3, after extensive briefing by the parties, Judge Brown granted the motions for preliminary injunction filed by Ryan and the intervening interest groups and postponed the effective date of the ban. The limited nature of Judge Brown’s ruling means the effective date of the noncompete rule is still September 4, for?all?non-parties to the case. Stated differently, the FTC is free and clear to enforce the noncompete rule on September 4, against any employer other than Ryan and the intervening interest-group plaintiffs. The lack of a nationwide injunction is especially problematic for employers navigating the noncompete rule’s mandatory requirement that employers issue written notices to all workers (who are not “senior executives”) that their existing noncompetes are unenforceable. ? Learn more from partners Kristopher Hill and Beverly Whitley here: https://lnkd.in/gEd9_QBE. #NoncompeteBan #LaborAndEmploymentLaw

Well, noncompete friends, the FTC rule banning covenants not to compete is out of commission for now. The Texas court in the Ryan case has (this afternoon) granted summary judgment in favor of plaintiffs and implemented a nationwide injunction against the rule going into effect (scheduled for September 4). In a nutshell, the court found as it did before: that the FTC has exceeded its regulatory authority, and that the rule is arbitrary and capricious. So, the status quo remains in place pending inevitable appellate analysis. Your noncompetes, if they were valid before the FTC rule, remain valid. Remember that that the law disfavors them in most states, requiring them to be construed narrowly, and that several states ban them (California, Minnesota, Oklahoma, North Dakota), while other states have restrictions on the use of noncompetes for lower-compensated employees (for example, Virginia, Oregon, Maryland, and Illinois). You can see the opinion here: https://lnkd.in/gFQkabhu

?? Important Update on FTC’s Non-Compete Rule ?? A federal judge in Texas just struck down the FTC’s Non-Compete Rule, citing that the agency overstepped its authority. But what does this mean for businesses nationwide? Gregg Gilman, Shira Franco and Daniel Friel dive into the implications of this decision, the pending competing litigation, and what the FTC might do next. Stay ahead of the curve – read the full update here: https://lnkd.in/dGyBKgr9 #EmploymentLaw #NonCompete #FTC

?? Important Update on FTC’s Non-Compete Rule ?? A federal judge in Texas just struck down the FTC’s Non-Compete Rule, citing that the agency overstepped its authority. But what does this mean for businesses nationwide? Gregg Gilman, Shira Franco and Daniel Friel dive into the implications of this decision, the pending competing litigation, and what the FTC might do next. Stay ahead of the curve – read the full update here: https://lnkd.in/dBUMPa5U #EmploymentLaw #NonCompete #FTC ???????

?? Important Update on FTC’s Non-Compete Rule ?? A federal judge in Texas just struck down the FTC’s Non-Compete Rule, holding that the agency overstepped its authority. What does this mean for businesses nationwide? My colleagues Gregg Gilman, Shira Franco and Daniel Friel dive into the implications of this decision, the pending competing litigation, and what the FTC might do next. Read the full update here: https://lnkd.in/e-chrUgb #EmploymentLaw #NonCompete #FTC

Business owners, don't miss this! ?? If you believe you may have received ERC credits that were overstated, this article from our partners at CBIZ, Inc. is a MUST READ. The IRS's new voluntary disclosure program for ERTC claims is here- learn how to correct your claims at a discounted rate and avoid penalties. https://lnkd.in/ehJ24Nj9

?? **Federal Judge Blocks FTC's Noncompete Ban Proposal in Texas** ?? A major legal development has occurred: a federal judge in Texas has blocked the FTC's proposal to ban noncompete agreements. This decision is shaking up the business and legal landscapes, particularly for employers and employees. **Key Takeaways:** 1. **Federal Overreach**: The judge ruled that the FTC exceeded its authority, attempting a broad ban that would affect multiple industries and states. 2. **State Laws**: Texas has specific laws for noncompete agreements that offer a balanced approach for both employers and employees. 3. **Economic Impact**: A sudden ban could disrupt small businesses. 4. **Employee vs. Employer**: The decision aims to balance employee mobility with the protection of business interests. 5. **Legal Precedents**: Historical cases favor a nuanced approach rather than a blanket ban. ?? **For Employers**: Maintaining noncompete agreements can protect trade secrets and client relationships. Ensure these agreements are reasonably restrictive and comply with state and federal laws. ?? **For Employees**: Understand the terms of any noncompete agreement and consult legal advice if necessary. ??? **Next Steps**: The debate isn't over, and further changes might come. Stay informed to navigate the evolving legal landscape effectively. To maximize your financial freedom and explore tax-saving strategies, reach out to us! **Next steps: Set up a call with Together CFO**: [**https://lnkd.in/gvjNqUXh). Our experts are here to guide you. ?? #TaxSavings #LegalUpdate #Noncompete #TaxStrategy #TogetherCFO