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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!
Ross T. Hendrickson
President
MRH Insurance Group, Inc.
"I want to thank you and your team again at HR Partners for your amazing work in securing a high-quality Customer Service Representative (CSR) for our Topeka MRH Insurance Group office.
Without a doubt, if it were not for your company’s ability to understand the different paths to communicate our need, we would not have been successful in securing, in our opinion, the very best CSR in Topeka. HR Partners was instrumental in providing the strategy to secure such an individual for our company and my workings with each and every member of your team was professional and impressive.
I shall ever be grateful for your assistance in helping our company grow in Topeka and northeast Kansas by securing the right MRH Team Member for our operation."
