The Federal Trade Commission’s proposed ban on non-compete agreements was set to take effect Sept. 4, however, a Texas district court stepped in and struck it down as unconstitutional. The implications of the case are now nationwide, as the judge also asserted the federal agency overstepped its authority.
Courts Strike Down Non-Compete Ban
In this episode, Legal Insights expert Trent Cotney, partner at Adams and Reese, explains how a recent court ruling will impact the roofing and construction industries when it comes to non-competes.
The FTC has until Oct. 19 to appeal the ruling. Roofing contractors should be aware and are asking questions about the impact.
“The ban no longer exists. It’s business as usual, whatever non-competes you have, the state law will apply,” Cotney said in this exclusive conversation with RC Group Publisher Jill Bloom. “If you’re an employer, it’s great news.”
Cotney also discussed another development involving the FTC’s final rule on fake reviews.
“Businesses everywhere today depend on reviews. People look at them to determine a company’s reputation,” Cotney said.
The ruling essentially prohibits:
- Purchasing fake reviews
- Self-reviews without disclosure
- Social media falsehoods
- Threaten or suppressing negative reviews.
Check out the video interview here or visit our podcast page to download the episode and listen on the go.
