An Update on the FTC’s Non-Compete Rule, Part 2

In this episode of S&C's Critical Insights, Annie Ostrager, Co-Head of S&C's Employment Law Group, and Jeannette Bander, a partner in S&C's Executive Compensation Group, provide an update on the nationwide injunction against the FTC's non-compete rule and discuss considerations for companies in light of this decision.

Following the nationwide permanent injunction from the Northern District of Texas, the FTC has stated that it is "seriously considering" appealing and has until October 19 to do so.

Annie and Jeannette note that companies should continue to ensure any non-competes are within the bounds of their relevant state laws. "The injunction preventing enforcement of the FTC rule does not have any effect on other non-compete legislation in place at the state level, where many states already have significant limitations on non-competes," says Jeannette.