August 12, 2024 Update: The new rule is scheduled to go into effect on September 4, 2024. So far, the cases challenging the rule have come up with mixed results. However, currently none have resulted in the nationwide injunction preventing the rule from going into effect for all employers (as the parties challenging the rule had hoped to accomplish). The US District Court for the Northern District of Texas is expected to make a final ruling in the case before it by August 30, 2024.  This court could issue a decision that has nationwide implications but so far has only issued a preliminary injunction that applies only to the application of the rule to the plaintiffs in that case.  Our employment group will continue to monitor and provide updates on the situation in advance of the September 4 effective date.  Given the short timeline employers should not be waiting until August 30 to start educating themselves about the new rule and giving thought to how it will impact them if it goes into effect as scheduled.

On Thursday, May 2, employment attorney Jessica Summers presented a webinar about the use of employee non-competes and other restrictive covenant agreements, including the recent final from the Federal Trade Commission (FTC) to banning non-competes, state and local legislation limiting the use of non-competes, and options for small businesses to protect their interests and information in light of recent developments.

Check out the recording below.