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INTERVIEW ON THE PRICE OF BUSINESS SHOW, MEDIA PARTNER OF THIS SITE.
Recently Kevin Price, Host of the nationally syndicated Price of Business Show, interviewed Michael Marino.
On a Recent Price of Busines, Host Kevin Price visited with New York City Attorney, Michael Marino.
Judge Brown issued her final decision vacating the Federal Trade Commission’s (aka “FTC”) nationwide ban on noncompetes. Early in 2024, the FTC issued a rule to ban enforcement of so-called “non-competes,” which are employment agreements that restrict an employee’s ability to leave and work for a competitor.
Historically, state legislatures have regulated non-competes as a matter of state law, balancing the tension between two important public policies: whether a former employee should have an unfettered ability to pursue better opportunities elsewhere, against the right of businesses to protect their confidential information acquired by the employee during their employment, everything from business practices, techniques, strategies, and goals, to customer lists and financial information.
The FTC’s federal rule would resolve the matter on a nationwide level – but its authority to do so is being challenged currently in different federal courts.
On August 20, 2024, Judge Ada Brown of the federal district court in the Northern District of Texas issued a final decision in Ryan LLC v. Federal Trade Commission. Judge Brown held that the FTC did, in fact, exceed its statutory authority by implementing a ban on noncompete clauses. In vacating the FTC’s rule with “nationwide effect” she noted that the role of an administrative agency is to do what Congress expects, not what the agency believes is best. The FTC is considering an appeal to the Fifth Circuit. Judge Brown’s rationale is consistent with a federal court decision in the Middle District of Florida, although a third federal court, in the Eastern District of Pennsylvania, has made a preliminary ruling that the FTC has authority to engage in such rulemaking.
More to come. For now businesses have some cover from FTC enforcement until these issues are resolved conclusively on appeal, most likely from the US Supreme Court.
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