Federal Law Update: Non-Compete Agreements

In April we prepared a Federal Law Update that outlined some pretty major changes at the federal level, with one being a ban on Non-Compete Agreements. The new law was set to go into effect September 4, 2024, but as we shared in our April Update, the Final Rule by the Federal Trade Commission (FTC) was being challenged in court, which meant details of the law could be changed, or the law could be blocked altogether.

Fast forward to today, and “long story short” since we want to be respectful of your time and spare you paragraphs of legalese, a US District Court in Texas has blocked the FTC’s Final Rule banning Non-Compete Agreements.  

What does this mean? 

In very simple terms, employers do not have to comply with the Final Rule at this time. There is a chance the FTC will appeal, but for now, Non-Compete Agreements are enforceable under federal law. 

Friendly reminder though – if you are in Washington or California, this likely has no impact since restrictions in those states are very strict!

HRT Northwest: Your HRT Northwest Team

Seattle: (253) 642-7372 | info@hrtnorthwest.com

This Update is not a full overview of all recent or upcoming legal changes. HRT Northwest is staffed by professionals in the field of Human Resources and business management. We are glad to help with your HR needs; however, we do not offer legal advice and our services are not a substitute for the help of a qualified attorney.