Illinois Chamber of Commerce’s Post

📣 Breaking News for Employers! 🚨 A federal judge has just put the brakes on the FTC's noncompete ban. 🛑 Key points: - The ban's Sept 4 start date is now on hold for some - Judge says FTC may have overstepped its authority - Final ruling expected by Aug 30 What does this mean for your business? The debate over noncompetes isn't over yet. Stay tuned as this story develops! Want the full scoop? Check out the article: https://lnkd.in/eEHhkfgX #EmploymentLaw #Noncompetes #HRNews #BusinessStrategy Thoughts? Let's discuss in the comments! 👇

In the ongoing debate over non-compete clauses, there is a pressing need to strike a balance that safeguards both employers and employees. Employers require protection to hire, train, and sustain their business operations without inadvertently training future competitors. Simultaneously, it is essential to ensure that employees retain fair and reasonable right-to-work options. A recent federal court ruling in Texas has added a new dimension to this debate. The court has partially blocked the government’s ban on non-compete agreements, which was set to take effect on September 4. https://lnkd.in/g3nSmEQg

I guess that this is not a done deal? In theory the pending FTC ban on noncompete agreements should enable employees the freedom to seek employment that would provide better wages and benefits in a free market economy. The FTC estimates that the new rule will facilitate the creation of 8,500 new businesses annually and allow for wages to increase by close to $300 billion. The author points out here that there are instances where the means does not necessarily justify the end. In some cases, non-solicitation agreements would provide adequate protection to businesses. There is a clear distinction between the general workforce and senior executives. In the event that an employee decides to explore their own entrepreneurial spirit, there is however a compelling argument that a noncomplete of non-solicitation agreement could be restrictive. In that event the language of any such agreement must be crafted to consider all angles and consider the rights of both parties. What is your view on the topic? #noncompete #nonsoliciation #ftc #competition #employeerights https://lnkd.in/etPduanQ

Interesting read.

📢 Breaking News: Federal Judge Partially Blocks U.S. Ban on Noncompete Agreements 📢 A recent decision from a federal court in Texas has put a hold on the U.S. ban on noncompete agreements, originally set to take effect on September 4. The ruling comes after Ryan LLC, a tax services firm, sued the Federal Trade Commission (FTC) just hours after the FTC voted to ban noncompetes for almost all U.S. workers. Key Points: •   Judge Ada Brown of the U.S. District Court for the Northern District of Texas issued the ruling, stating that the plaintiffs are likely to succeed on the merits of the case. •   The ruling temporarily blocks the ban for the plaintiffs, with a final decision expected by August 30, 2024. •   The lawsuit was supported by organizations like the U.S. Chamber of Commerce, Business Roundtable, and the Texas Association of Business. Noncompete agreements affect an estimated 30 million Americans, limiting their ability to join competing businesses or start their own. The FTC argues that banning these agreements could boost wages by nearly $300 billion annually and foster the creation of 8,500 new businesses each year. The debate around noncompetes highlights diverse perspectives: •   Proponents argue that noncompetes protect business interests, confidential information, and employee retention. •   Opponents, including FTC Chair Lina Khan, emphasize that noncompetes stifle economic liberty, reduce innovation, and limit job mobility. This ruling is a significant development in the ongoing conversation about workers’ rights and business interests in the U.S. Stay tuned for more updates as the case progresses. 🔗 Read the full article: NPR, link in comments 📸 Photo by Sebastian Pichler on Unsplash, link in comments #BusinessNews #NoncompeteAgreements #FTC #WorkersRights #EconomicLiberty

Big news! The Federal Trade Commission (FTC) has issued a ban on Noncompete clauses. I know many of you have them, they are usually part of all those papers you sign at the beginning of your relationship with your employer. I know we don’t think twice about signing them primarily because it is a condition of employment. Does this mean it’s null and void? Well, the new rule will take effect in 120 days, so if you take a job after 4-months, employers are not allowed to make you sign them. Does that mean you can go poaching your clients if you leave? Probably not, you for sure can’t abscond with company secrets, intellectual property, procedures, protocols, etc. But it allows you to work for competitors, and they don’t have some giant leash on you. Of course, the US Chamber of Commerce plans on suing, claiming it stifles competition, hurts businesses, yada, yada, yada. Personally, I think it’s a great development for all of us. Taking a claw out of our collective backs, and giving some power back to the worker. Here’s the article:   https://lnkd.in/gEkd2HBt

The fine print can only be read only if held up to a mirror. The ban on noncompete agreements is turning out to be non-straightforward. Uncertainty is rising over whether employers can require workers to sign noncompetes following legal challenges in two states to the FTC ban that is set to take effect in September. Chances are we've all seen them and signed them - noncompetes. They're usually included in that avalanche of paper and digital disclosures employers requires employees to sign on Day 1. One in five workers, or 30 million people, are restricted by noncompete agreements, which are employment contracts that limit the ability of employees to work for competitors or even start their own businesses. Because of their 'blanket' use by employers, the problem is they can apply to a wide range of employees from those earning minimum wage to CEOs. For employees, noncompetes can reduce innovation, inhibit wage and economic growth, and trap workers. In practice, they can be used to prevent those in the workforce from, say, moving to a competitor or realistically, anywhere without the approval of the previous employer under which the agreement was signed. For employers, the argument is that without noncompetes, companies could face challenges like protecting confidential information and competition for skilled employees. That's exactly the argument on which the legal challenges are being made. In many states including California, Minnesota, Oklahoma and North Dakota, noncompetes have already been banned, and at least a dozen other states have passed laws limiting their use. But, that has stopped employers from continuing to include them in employment documents. A total ban on noncompetes doesn't make much sense especially for rank-and-file and lower-wage workers. But they do in certain ways for senior executives and corporate leaders. Those noncompetes, however, are typically negotiated. Unless you're already in a state that deems them unforceable, noncompetes remain in economic limbo until this gets sorted out. And even then, there will be plenty of companies competing to file the next injunction https://lnkd.in/gRWVjATM #workers #ftc #noncompete #workplace #employees #employers #business #wages #career #workforce

A U.S. federal judge delayed a ban on noncompete agreements from taking effect. The decision, for right now, only impacts the case plaintiffs. However, as shared in this article from WorldatWork’s Workspan Daily, the ruling may signal a looming broader block on the FTC’s recent final rule. https://lnkd.in/gBMETBgQ #WorldatWork #WorkspanDaily #EmploymentLaw #HR #HRStrategy #Compensation #TotalRewards #TR #PayAndBenefits #Noncompete #NoncompeteAgreements #HumanResources #HumanCapital

Non-Competes In New York Are Banned! Not quite yet, but as soon as NYS Governor Hochul signs Bill No. S3100A. Truth be told, there has always been confusion over whether or not non-competes were legally binding on an employee in the first place. An article yesterday from Schwartz Sladkus Reich Greenberg Atlas LLP Senior Counsel Robert Gosseen has gone a long way toward clarifying things. The New York Bill Banning Non-Competes: What You Need To Know 'This past June the New York State legislature passed a bill (Bill No. S3100A) barring virtually all non-compete agreements for all workers, regardless of salary or job function (in other words, from KFC fry cooks to CEO’s). The Governor has announced that she will sign the bill, but hasn’t yet done so. When and if she does, the bill will become law 30 days after signing and make any non-compete agreement signed or modified after the law’s effective date unlawful. The law would not be retroactive, however...' Read the rest of the article here: https://lnkd.in/eKVqaZHg #employmentlaw #laborlaw #noncompete #NewYork #humanresources #business #smallbusiness #law #legal Jeffrey Schwartz Jarrett Roth Allen Turek Astra Tudisco David Alin Kelly Kulak Jen Barash Jeffrey Reich

I have been getting a lot of questions about the FTC's new rule regarding non-competes. Good thing Amit Bindra wrote a blog post about this very topic!