Ehrlich, Warr Provide Guidance for Employers in Aftermath of Blocked FTC Ban on Non-Competes in HR Daily Advisor

10.17.2024

Stinson LLP Partners Alisa Ehrlich and Nicci Warr authored an article for HR Daily Advisor, "After Judge Blocks FTC’s Worker Non-Compete Ban, Now What?"

The attorneys discuss the recent decision by a Texas federal court to block the Federal Trade Commission's (FTC) rule banning most worker non-compete agreements, preventing the ban's enforcement across the United States. They highlight the impact of the court's decision, stating, "The Texas order setting aside the non-compete rule means that otherwise valid non-compete agreements will remain lawful and subject to enforcement for now."

The attorneys say the Texas ruling is good news for many employers that rely on non-competes to protect their trade secrets and other legitimate business interests. They also emphasize ongoing uncertainty surrounding the issue and note that FTC enforcement actions can still be brought on a case-by-case basis. They also advise employers to stay up-to-date on legal developments and to consider state laws when enforcing existing or executing new non-compete agreements, as well as to understand what rules are in place in the states where a company does business and where remote employees are located.

"Employers that have not already done so should review their non-compete strategies to ensure they serve legitimate business interests, that they are used judiciously, and that restrictions are narrowly tailored," they write.

Ehrlich advises businesses on a wide range of employment law issues, including risk mitigation, policy creation and litigation. Her experience spans the gamut of employee laws, and she serves clients across various industries, including higher education, hospitality, energy and transportation, manufacturing and distribution, health care and banking.

Warr's experience working on complex litigation and counseling matters spanning antitrust, consumer protection laws and intellectual property issues gives her a unique perspective that helps her find effective and efficient solutions for her clients. Much of Warr's work focuses on new and emerging technologies and matters involving the intersection of intellectual property and antitrust law.

Read the full article.