A recent court ruling has blocked the Federal Trade Commission’s ban on noncompete agreements that was scheduled to start September 4.
A federal ban on noncompete agreements scheduled to start next week is now on hold.
A recent court ruling has blocked the Federal Trade Commission’s ban on noncompete agreements the commission announced in April. It was scheduled to start September 4.
Noncompete agreements prohibit, penalize, or have elements which act to prevent employees from working for a competitor or opening a competing business for a certain amount of time after they leave a job. The FTC estimates 30 million workers — nearly one in five Americans — are subject to noncompete agreements.
The court ruling — issued by a U.S. District judge in Texas — strikes down the upcoming federal ban though some officials believe it may be appealed. Companies also should remain mindful of existing state-specific restrictions on noncompete agreements.
Other recent employment law changes to know
It’s imperative for transportation and logistics companies to keep on top of relevant employment laws. Here are two other recent law changes to be aware of:
How CLA can help with employment law matters
Need help staying on top of and complying with employment laws? CLA’s HR consulting professionals can advise you on a wide range of workforce issues and help keep your organization HR compliant.
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