U.S. Federal Judge Halts Implementation of FTC’s Noncompete Ban: Implications for Your Dental Practice
On August 21, a federal judge in Texas overturned the Federal Trade Commission’s (FTC) recent rule that would have banned employers from enforcing noncompete agreements and requiring new employees to sign them.
The FTC’s ban on noncompete agreements, set to become effective nationwide on September 4, 2024, was challenged by leading business trade associations, including the U.S. Chamber, Business Roundtable, Texas Association of Business, and Longview Chamber of Commerce. The U.S. District Court ruled in favor of these associations, stating that the FTC had overstepped its regulatory authority in approving the ban. The FTC is currently considering appealing the ruling.
Employers can continue using noncompete agreements until a federal appeals court or the Supreme Court overturns the federal court ruling. AAE members who own a dental practice and provide noncompete contracts to employees or members currently subject to a noncompete agreement should consult with legal counsel if they have concerns about how this ruling may apply in their state.
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