Late yesterday, August 20, 2024, a Federal Court in Texas issued a decision which enjoins – on a nationwide basis – the FTC’s final rule which would effectively ban all non-competes with limited exceptions. While we expect the FTC to appeal this decision, the rule will not go into effect on September 4, 2024, or anytime soon. As a result, there is no current need to modify existing non-compete agreements, or send out a notice (described in the FTC rule) to current and former employees regarding any such agreements. 

As a reminder, various states still prohibit some or all post-employment restrictive covenants that prevent employees from working for certain competitors. If you are currently using the same form non-compete agreement nationwide, we recommend that you reach out to your Husch Blackwell labor and employment attorney for further advice and guidance. 

For now, it remains “business as usual” when it comes to non-compete agreements. Stay tuned for further developments.