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Providing People Solutions |
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Providing People Solutions |
The Federal Trade Commission (“FTC”) had planned to implement a comprehensive ban on non-compete clauses starting September 4, 2024. This rule was designed to prohibit employers from entering into non-compete agreements with workers, including senior executives, to promote fair competition and increase worker mobility.
However, a recent development has altered this course. On August 21, 2024, a federal judge in Texas blocked the FTC’s nationwide ban on non-competes, ruling that the FTC exceeded its statutory authority and did not provide sufficient evidence to justify such a sweeping ban. This decision has put the implementation of the rule on hold, pending further legal proceedings.
This case will likely be appealed to the United States Supreme Court and continue to be litigated until a final determination is made.
While employers need not do away entirely with their non-competes, it is important that moving forward employers be mindful of the enforceability, reasonableness, and narrowness of their non-competes and similarly their non-solicitation agreements.
In Kansas, non-competes reasonable as to time and geographical area remain valid and the Kansas Department of Labor has not issued a position on either the FTC rule or the ban.
We will provide our clients with any updates on this issue as they become available and relevant to the workplace.
We appreciate your business, and we wish you nothing but the best for Christmas and the New Year holidays.
2025 will be an epic year and we can’t wait to work with you to continue the magic.
To view the video, click the image below or click here, and once you see the video on Vimeo, please click the play button. Enjoy!
Tambra Offield
Officer Manager
East Texas Electric Cooperative
“I first met Kristina Dietrick and learned of HR Partners at last year’s NRECA Interact conference. Her presentation on developing an employee handbook was very informative. Kristina sent me all the materials and introduced me to the staff who worked closely with myself and our General Manager to develop our new employee handbook specifically to fit our needs.
We were so impressed that when our Board President asked about doing an evaluation of our General Manager’s performance, that we immediately thought of HR Partners.”
We can’t thank HR Partners enough for all their help with our GM’s review process. Their knowledge and experience made the process so easy.
I have recommended CBS to all 10 of our distribution cooperative members for all their human resources needs.
