Gunderson Dettmer’s Post

My latest on the cases challenging the FTC’s noncompete ban and what employers can be doing now to prepare! #employmentlaw #noncompete

We now have split decisions from two courts in the FTC non-compete ban saga: a decision enjoining the FTC's non-compete rule but only as to the parties in the Ryan matter (N.D. Tex.) and another declining to issue a nationwide injunction in the ATS Tree Services matter (E.D. Pa.). The Ryan court is expected to issue a final decision on the plaintiffs' request for a nationwide stay of the non-compete ban by August 30. In our latest article, Brodie D. Erwin and I discuss steps all businesses with non-compete agreements should be taking to prepare for the potential effectiveness of the FTC's rule on September 4.

In our most recent #FMG blog, Bill Buechner delves into a significant court ruling that impacts a major Federal Trade Commission regulation on non-compete agreements. Click the link below to learn more about the implications of the decision and what it means for employers moving forward. #FMGLaw #FTC #Texas #EmploymentLaw https://bit.ly/4cyL8B6

A Texas federal court has postponed the effective date of the Federal Trade Commission (FTC) rule banning noncompete agreements.  Read more about the latest status on the FTC ban #brightmine

On July 3, the U.S. District Court for the Northern District of Texas issued a limited stay and preliminary injunction of the Federal Trade Commission's final rule making unlawful virtually all non-compete agreements. Read Kirsten Eriksson's new blog post to learn more about the details (and limits) of the ruling as well as its context in the broader #employmentlaw landscape. https://lnkd.in/e6hK9BZ2 #noncompetes #laborlaw #FTC

The Federal Trade Commission's final rule banning nearly all noncompete agreements will not take effect on September 4 as planned. Read more about the August 20 Texas federal court decision that found the final rule to be unlawful in our recent alert authored by Heather Weine Brochin, James Leva and Howard Fetner. #FTC #NoncompeteAgreement #EmploymentLaw

Update: Legal Challenge to FTC Noncompetition Ban is Successful, but Limited to Named Parties Only for Now A judge has halted the FTC's ban on post-termination noncompetition agreements, but only as it pertains to the named parties in the case. In Ryan LLC v. FTC, the court preliminarily found that the FTC exceeded its statutory authority in promulgating the noncompetition ban, because Section 6(g) of the FTC Act does not grant the FTC substantive rulemaking power for unfair methods of competition. The court also indicated a substantial likelihood that the new rule is arbitrary and capricious due to its broad application without a reasonable explanation. For now, however, this ruling applies only to Ryan LLC, the U.S. Chamber of Commerce, and other named parties in the case, NOT to all employers. It is possible the FTC’s ban will take effect on September 4, 2024, but legal obstacles remain. The court in the Ryan case intends to make a final ruling on the merits of the case by August 30, 2024, and may decide to grant broader relief. In the meantime, a federal district court in Pennsylvania is scheduled to rule on a similar motion to stay by July 23, 2024, in a case entitled ATS Tree Services v. FTC. #noncompetes #FTC #employmentlaw #legalupdate https://lnkd.in/erAB5jkS

Last week, N.D. Tex. issued a limited (not nationwide) preliminary injunction staying the FTC's non-compete ban. The ruling telegraphs important clues as to where the court may land in its (projected) August 30, 2024 decision on the merits. Should the FTC's proposed rule survive, trade secret protection-already important-becomes much more so without the prophylactic measure of a non-compete agreement. But regardless of whether the rule survives, this is an excellent opportunity for companies to take stock of trade secrets and of those reasonable measures required to protect them. Buchanan is ready to help. #tradesecrets #intellectualproperty #reasonablemeasures

A Texas federal district court issued its promised decision on July 3, temporarily staying the FTC’s Non-Compete Rule in Ryan LLC v. Federal Trade Commission as applied to the Plaintiff and the Plaintiff-Intervenor organizations (but not the members of those organizations) only. Learn more about this decision's key elements and other important takeaways. #FTC #NonCompeteAgreements #Antitrust #EmploymentLaw

A Texas federal district court issued its promised decision on July 3, temporarily staying the FTC’s Non-Compete Rule in Ryan LLC v. Federal Trade Commission as applied to the Plaintiff and the Plaintiff-Intervenor organizations (but not the members of those organizations) only. Learn more about this decision's key elements and other important takeaways. #FTC #NonCompeteAgreements #Antitrust #EmploymentLaw