The Death of Noncompetes? Implications of the FTC’s Ban on Non-Competition Agreements

The construction industry is one of Arizona’s largest employers, accounting for 6-7% of Arizona’s workforce, and employers—especially larger employers—need to be aware of the ever-changing landscape involving noncompete agreements. The Federal Trade Commission’s ban on noncompetes, announced in April 2024, seemed to be the culmination of growing opposition to noncompetes in the courts and in the workforce.  The ban, however, was struck down by a federal court last month before it was scheduled to take effect on September 4, 2024.  We will look at the resulting implications, including the following:

• What did the ban cover (and not cover)?
• What is the current status of the litigation over the ban?
• Is the ban likely to be revived at some point?
• What can employers do to balance the need for confidentiality and loyalty against the potential exposure for overbroad (or banned) noncompetes?
• Best practices for employers to protect themselves from unfair competition.
• Best practices for employers to protect themselves from legal exposure over noncompetes.

Speaker:
Nancy R. Giles, Giles Law Firm, PLLC