RumbergeKirk partner David Willis shared insights on the FTC’s Final Rule on Noncompete Agreements and its implications for employers during this The Knowledge Group, LLC CLE webcast. The presentation unpacked the critical changes employers need to know, the status and impact of lawsuits challenging the enforceability of the Final Rule, and practical strategies to protect businesses in the new legal landscape.

Key topics discussed included:

• Key provisions of the FTC’s Final Rule and how they impact and change the current state of the law
• Enforceability of existing noncompete agreements
• Exceptions to the Final Rule
• Issues raised in legal challenges to the Final Rule and what effect, if any, these challenges will have 
• Effective alternative strategies for protecting trade secrets, customer goodwill, and other confidential information

Some of the key takeaways shared included:

• The FTC Final Rule on Noncompete Agreements, which was set to impose a nationwide on almost all non-compete agreements, has been permanently enjoined by a Texas District Court and did not go into effect, as planned, on September 4, 2024.  This ruling is likely to be appealed and is subject to being overturned.
• The FTC can, however, continue to evaluate non-compete agreements on a case-by-case basis to determine whether they constitute unfair methods of competition.
• Employers should ensure that non-compete agreements are required only where necessary to protect a legitimate business interest, are reasonable, and are in compliance with state law.

Available on demand from The Knowledge Group