LaborSpeak: FTC Approves Rule Voiding and Banning Non-Compete Agreements

In this installment of LaborSpeak, we discuss important updates to state laws that enhance protections for employees who are pregnant.

New York voters just passed Proposition One, also called the New York Equal Rights Amendment, expanding protections under the state constitution’s equal protection clause for public employers. The state constitution will now prohibit discrimination based on race, color, ethnicity, national origin, age, disability, creed, religion or sex—including sexual orientation, gender identity, gender expression, pregnancy, pregnancy outcomes and reproductive healthcare and autonomy.

In this installment of LaborSpeak, we discuss the details of the recent Texas federal court ruling setting aside the FTC’s nationwide non-compete ban and what may happen next.  

On August 20, the Northern District of Texas held that the Federal Trade Commission’s (FTC) rule banning non-competes was unlawful and set the rule aside on a nationwide basis.  As a result, the rule will not be enforced or take effect.

On July 23, a judge in the Eastern District of Pennsylvania denied a company’s motion to stay the September 4 effective date of and preliminarily enjoin the Federal Trade Commission’s (FTC) rule banning non-competes for almost all employees and independent contractors (the Rule).

On July 3, 2024, the U.S. District Court for the Northern District of Texas enjoined the Federal Trade Commission (FTC) from enforcing and implementing its rule banning non-competes and stayed the September 4 effective date of the rule against Ryan LLC, a tax services firm that sued the FTC over the rule. The court provided the same relief for several other parties that intervened in the case.

In this installment of LaborSpeak, we discuss a new state law affecting pay transparency and how it fits into the growing list of jurisdictions with similar requirements.

The Federal Trade Commission (FTC) has approved a final rule that would void and ban almost all worker non-compete agreements in the United States. However, the rule is already facing legal challenges and injunction efforts, with more likely to come, as critics question the FTC's legal authority to issue such a rule. In this installment of LaborSpeak, we provide a brief summary of the rule and discuss what employers need to know now.