On April 23, 2024, the Federal Trade Commission voted 3-2 to approve a final rule banning all employee noncompetition agreements nationwide. The rule, currently set to go into effect 120 days after publication in the Federal Register (except for the notice provision which is effective earlier), is the result of the FTC’s position that
FTC
FTC Proposes Banning Noncompetition Agreements with Employees
On January 5, 2023, the Federal Trade Commission (FTC) issued Notice of Proposed Rulemaking announcing that it was proposing an administrative rule that would end the use of all noncompetition agreements in employment relationships outside the context of the sale of a business. The proposed rule, among other things, labels the following as unfair methods…
Complying with Federal Law When Performing Background Checks
Recently I wrote about ADP’s 12th Annual Screening Index summarizing employment screening and hiring trends. Employers using third-party background screening services must remember to comply with the Fair Credit Reporting Act’s (FCRA) procedures prior to using consumer reports, in whole or in part, employment taking employment actions. Moreover, while Texas has no specific statutes governing use of consumer…