Contact Us
Categories
- FTC
- Emotional Support Animals
- Service Animals
- Employee Agreement
- Remote Work
- Federal Trade Commission
- LGBTQ
- Minors
- United States Department of Justice ("DOJ")
- Work from Home
- Arbitration
- Workplace health
- Trade Secrets
- Corporate
- Center for Disease Control
- Americans with Disabilities Act ("ADA")
- FFCRA
- Opioid Epidemic
- Occupational Safety and Health Administration (“OSHA”)
- COVID-19
- Families First Coronavirus Response Act
- H.R.6201
- Health Care Law
- IRS
- Paid Sick Leave
- Temporary Leave
- Treasury
- Coronavirus
- Worker Misclassification
- Labor Law
- Overtime
- Kentucky Unemployment Insurance Commission
- Sexual Harassment
- FMLA Retaliation
- Overtime Rule
- Employer Wellness Programs
- Genetic Information Nondiscrimination Act ("GINA")
- Kentucky minimum wage
- Minimum wage
- Paid Time Off ("PTO")
- Sick Employees
- Wage and Hour
- Employee Benefits
- Employment Discrimination Laws
- Employment Non-Discrimination Act ("ENDA")
- ERISA
- Human Resource Department
- Independent Contractors
- Kentucky Civil Rights Act (“KCRA”)
- OSHA
- Overtime Pay
- ADA Amendments Act of 2008 (“ADAAA”)
- Adverse Employment Action
- Americans with Disabilities Act
- Bring Your Own Device
- BYOD
- Civil Rights
- Compliance
- Copyright
- Department of Labor ("DOL")
- EEOC
- Employee Handbook
- Employee Misconduct
- Employment Law
- Fair Labor Standards Act (FLSA)
- Family and Medical Leave Act (“FMLA”)
- Intellectual Property
- National Labor Relations Act (NLRA)
- National Labor Relations Board (NLRB)
- Pregnancy Discrimination Act
- Social Media
- Social Media Policies
- Title VII of the 1964 Civil Rights Act
- U.S. Department of Labor
- U.S. Equal Employment Opportunity Commission (“EEOC”)
- Uncategorized
- Union
- Volunteer
- Work for Hire
- Young v. UPS
- Amazon
- Department of Health and Human Services
- Federal contractors
- Kentucky Labor Cabinet’s Occupational Safety and Health Program (KOSH)
- Micro-unit
- Portal-to-Portal Act of 1947
- Security Checks
- Security Screening
- Specialty Healthcare & Rehabilitation Center of Mobile
- U.S. Supreme Court
- Cloud
- Creech v. Brown
- EEOC v. Hill Country Farms
- Equal Employment Opportunity Commission v. Kaplan Higher Education Corp.
- Lane v. Franks
- Mine Safety and Health Administration ("MSHA")
- Non-exempt employees
- Northwestern
- Web Content Accessibility Guidelines
- Whistleblower
- "Ban-the-box"
- 2013)
- Berrier v. Bizer
- Bullying
- Chapter 11 Bankruptcy
- Citizens United v. Federal Election Commission
- Companionship services
- Compensatory time off
- Conestoga Woods Specialties v. Sebelius
- Consumer Credit Protection Act (“CCPA”)
- Crystalline Silica
- Davis-Bacon and Related Acts
- Drug-Free Workplaces
- Earnings
- Ehling v. Monmouth-Ocean Hospital Service Corp.
- Federal Stored Communications Act (“SCA”)
- Government employees
- Government shutdown
- Home Health Care Workers
- Illness and Injury Reports
- Job applications
- Jury duty
- Kentucky Department of Workers’ Claims
- Kentucky Wage and Hour Act
- Maternity Leave
- McNamara O’Hara Service Contract Act
- NFL Bullying Scandal
- Payroll
- Permissible Exposure Level ("PEL")
- Private employers
- Sebelius v. Hobby Lobby Stores
- Senate Bill 157
- Shazor v. Prof’l Transit Mgmt.
- Small Business Administration (SBA)
- Violence
- Wage garnishment
- WorkSmart Kentucky
- At-will employment
- Chenzira v. Cincinnati Children’s Hospital Medical Center
- COBRA
- Defamation
- Defense of Marriage Act (“DOMA”)
- EEOC v. Fabricut
- EEOC v. The Founders Pavilion
- Employee Hazards
- Employee of the Month Programs
- Employee Training
- Employer Group Health Plans
- Employment Practices Liability Insurance
- Endorsements
- Federal Workplace Agencies
- Freedom of Speech
- Gatto v. United Airlines and allied Aviation Services
- Giant Food LLC
- Health-Contingent Wellness Programs
- HIPAA
- KYSHRM 2013
- Litigation
- Madry v. Gibraltar National Corporation
- Mandatory vaccination policies
- Medical Exams
- Megivern v. Glacier Hills Incorporated
- Motivating Factor
- Obesity
- Online Account Protection
- Online Defamation
- Participatory Wellness Programs
- Pennington v. Wagner’s Pharmacy
- Pension Plans
- Reference checks
- Sequester
- SHRM
- Social Media Ownership
- Supervisor
- Tangible employment actions
- Title VII retaliation cases
- Troyer v. T.John.E Productions
- Unfair Labor Practice
- United States v. Windsor
- University of Texas Southwestern Medical Center v. Nassar
- Vance v. Ball State University
- Contraceptive Mandate
- Employee Arrests
- Employee Forms
- Employee photographs
- Employer Mandate
- FICA
- Form I-9
- House Labor and Industry Committee
- Job Description
- Job Requirement
- Kentucky’s Whistleblower Act
- KRS 391.170
- Municipal Liability
- Patient Protection and Affordable Care Act
- Play or Pay
- Posting Requirements
- Public Sector Liability
- Record Retention
- Religious Employer
- Right to Work Bill
- Severance Pay
- Strategic Enforcement Plan (SEP)
- Supplemental Unemployment Compensation Benefits
- Tax Refund
- Telecommuting
- U.S. Citizenship and Immigration Services
- United States v. Quality Stores
- White v. Baptist Memorial Health Care Corp.
- Wilson v. City of Central City
- Class Action Waivers
- Criminal Background Checks
- Crisis Management
- Employee Performance Reviews
- Employee Personnel Files
- Federal Arbitration Act (FAA)
- Federal Department of Labor
- Informal Discussion Letter (“EEOC Letter”)
- Kentucky Labor Cabinet
- Labor and Pensions ("HELP")
- PhoneDog v. Kravitz
- Salary Threshold
- Social Networking Online Protection Act (SNOP)
- Social Privacy Laws
- Workplace Discrimination, Harassment and Retaliation
- Workplace Politics
- Business Insurance
- Communications Decency Act
- Employee Contracts
- Hiring and Firing
- Hosanna-Tabor Opinion
- Insurance Coverage
- Internet & Media Law
- Internet Defamation
- National Labor Relations Act
- Non-Compete Agreement
- Retaliation by Association
- Unemployment Benefits
- Uniformed Services Employment and Reemployment Rights Act
- USERRA
FTC Ban on Noncompetes Struck Down
A Texas Court struck down the FTC's Rule banning noncompete agreements set to take effect on September 4th, 2024. The Court ruled that the FTC had overstepped its authority in implementing the Rule and further held that the Rule was overly broad because it provided no reasonable explanation for banning virtually all noncompete agreements.
This decision prevents the Rule from going into effect unless the opinion is successfully appealed, which is unlikely. Accordingly, noncompete agreements remain valid and enforceable unless and until the FTC and/or Congress takes further steps to implement a federal ban. The Texas Court hinted that a federal ban may be appropriate if any future Rule was targeted toward specific noncompetes or uses less disruptive alternatives.
The effect of this decision is that businesses are free to continue to use noncompete agreements that are narrowly tailored and conform to state laws. Please be mindful that the vast majority of state legislatures have passed laws limiting the use and enforceability of noncompete agreements. Last year, a bill was introduced in the Kentucky legislature banning noncompete agreements for certain employees. Although this bill was not passed, we can expect similar legislation to be considered next year. As such, businesses should prepare for the possibility that Kentucky will limit the use of non-compete agreements and consider alternatives that will still protect their legitimate business interests.
If you want to read more about the Texas Court’s ruling, please click here: https://bit.ly/3T6wgmk
Cynthia L. Effinger, Member with McBrayer, is located in the firm’s Louisville office. Ms. Effinger’s practice is concentrated in the areas of employment law and commercial litigation. Her employment law practice is focused on drafting employment manuals and policies, social media, wage and hour, non-compete agreements and workplace discrimination. Ms. Effinger can be reached at ceffinger@mcbrayerfirm.com or (502) 327-5400, ext. 2316.
Claire M. Vujanovic, Member with McBrayer, is located in the firm's Louisville office. Ms. Vujanovic's practice is concentrated in the areas of labor and employment law and includes NLRA compliance, drafting and reviewing employment manuals and policies, drafting severance, non-compete and employment agreements, and counseling clients related to overtime and wage and hour regulations, laws and claims and workplace discrimination. Ms. Vujanovic can be reached at cvujanovic@mcbrayerfirm.com or (502) 327-5400, ext. 2322.