Posted on 08/20/2024 8:41:42 PM PDT by CFW
A federal judge in Texas on Tuesday barred a US Federal Trade Commission rule from taking effect that would ban employers from requiring their workers to sign non-compete agreements.
The ban, which had been scheduled to go into effect nationwide on September 4, is now effectively blocked.
US District Judge Ada Brown in Dallas said the FTC does not have the authority to ban practices it deems unfair methods of competition by adopting broad rules.
“The Court concludes that the FTC lacks statutory authority to promulgate the Non-Compete Rule, and that the Rule is arbitrary and capricious. Thus, the FTC’s promulgation of the Rule is an unlawful agency action,” Brown wrote in her order. “(The rule) is hereby SET ASIDE and shall not be enforced or otherwise take effect on September 4, 2024, or thereafter.”
Brown had temporarily blocked the rule in July for a small number of employers while she considered a bid by the US Chamber of Commerce, the country’s largest business lobby, and tax service firm Ryan to strike it down entirely.
(Excerpt) Read more at cnn.com ...
never ask to sign a non compete, just NDAs
Sorry, but if for some reason you did have to leave her employment you should have been able to take your skill and use it to your advantage. It was to her advantage to have you learn framing. It was not a one way street.
That would be a field where such agreements are legit. Even without a non compete clause other laws such as those dealing with proprietary, and intellectual property would certainly come into play.
Good it’s common sense
Voters can contact their representatives and Congress can pass a law if they want a limit on non-compete agreements.
I was only limited to an area and time within that area. Picture framing is a craft. She was willing to teach a total novice for the price of some restrictions to protect her business. I was only at a disadvantage if I wasn’t willing to work outside of the distance in the contract. She could’ve easily hired an experienced framer. There’s a whole lot more framers than there are framers’ jobs in our area.
That is what should be done if a federal level law is needed. I’d rather it be done on a state level.
Your craft example is excellent. You, in effect, were paying off an apprenticeship. The subject domain, timeframe, and the employer’s investment in you, all of these matter. And if the NCA is too stringent, people won’t sign it, or courts won’t enforce it.
Remembering a consulting firm I worked for. The boss was talking about a blanket non-compete for a while. We told him that absent him giving us something of value - extra training or such with a payback period - we weren’t signing.
That’s BS! What trade secrets does a construction company give to an employee? It’s construction. Then there are a-hole business owners that prevent people from working the trade they know. Those business owners hopefully will die in the coming war and those that support non competes. People that make other people suffer for months and months, some losing cars and houses. I hope the supporters of the ban all die!!!!
What constitution?
Republicans = managerial class = minority = losers.
This ruling upholds an individual being forced to sign away their freedom. On the face of it non competes are unconstitutional.
You’re gonna see a lot more of this now that chevron deference is gone.
CC
Contracts come under state law, not federal law. It’s not a question of whether non-compete agreements are good or bad on their merits. It’s a simple matter of whether a federal agency should have any role in them at all.
Oh, please. By that logic, an employer that makes an employee show up to work is violating his freedom.
It’s a good ruling whatever you think of the topic of non-compete clauses in any given area of business.
It’s a good decision because it stops government from adopting broad rules based on nothing than the bureaucrats’ say-so. The administrative state is not our friend.
So?
Don't like it, be your own boss.
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