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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.
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“We began working with HR Partners to help us fill an important position in our organization. They offered some new and effective methods for helping us advertise the open position and were instrumental in assisting us with following up on potential candidates.
Since that initial engagement, we’ve utilized the expertise of HR Partners for a wide range of human resources services, from staffing assistance to general HR management advice. Their entire staff has been exceptional. They are professional, knowledgeable, responsive, and enjoyable to work with. We are very happy with their service and intend to continue to rely on them as a trusted business partner.”
