FTC Ban of Non-Compete No Longer In Effect

Transcript

Hi, I'm Regina Campbell from The Campbell Law Group, and I just wanted to take a moment to tell everybody about the two important employment law rulings that came out from courts over August and September, in case you missed our email notification of the same.

There are two important rulings. One of them, probably the most important, particularly for employees and non-competes, was a ruling out of Texas in Ryan LLC v. FTC, where a Texas U.S. District Court basically ruled that the Federal Trade Commission had exceeded its statutory authority by implementing a rule banning almost all non-compete agreements. That was something of very big concern to everybody. A lot of my clients felt it was overly broad and would dramatically affect their business, so that was a relief for a lot of employers.

Keep in mind, also, non-competes still should be limited and narrowly tailored to serve your business interest. They should still not be applied broadly. If you want more information on that, please give us a call. I'd be glad to explain that little bit of nuance. But for the most part, it's a relief to a lot of our clients.

The second important employment law ruling came from the Fifth Circuit Court of Appeals, where they basically vacated the tip rule, which everyone knows as the 80/20/30 rule. That also was affecting a lot of service industries and clients, and it has been vacated for the time being. So stay tuned.

If you've missed this email, please sign up to be on our email list to receive these important updates frequently that may relate to your business or to your family. We look forward to seeing you on social media, and if you need anything, you know where to find us. Thank you. Take care.