“To Compete or Noncompete?”

[NewsCopy]

Can you have noncompetes with employees or not?

For a long time, state law governed the enforceability of noncompetes and then in April 2024, the Biden administration’s Federal Trade Commission voted to ban noncompete agreements almost entirely.

The rule faced immediate legal challenges, (the rule was struck down but was still playing it's way through the courts) employers were left scrambling to change agreements or abandon them entirely.

Then we had a presidential election and change in administration, and now the Trump administration’s FTC has fully abandoned any efforts to support the ban.

So, where does that leave the ban and what does it mean for employers wanting to use noncompete agreements?

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National Law Review

[60swerethebest]

Can that be added to athletes? If you transfer you can’t compete in our conference or against us.

[cjr3888]

Can that be added to athletes? If you transfer you can’t compete in our conference or against us.

Not anymore. That's how some conferences (SEC) did things before the transfer portal. Schools could block a players transfer to certain schools. Mostly they would block conference teams and teams on future schedules.

[Turbine]

Not anymore. That's how some conferences (SEC) did things before the transfer portal. Schools could block a players transfer to certain schools. Mostly they would block conference teams and teams on future schedules.

That practice ended pre (pay for play) NIL.

It ended when they were playing for free.

I could see a scenario (if the NIL ever ran through the school) where the snatching school would compensate or a no compete could be considered for the payee.

If the money flows through an outside meddler, I doubt any no-compete would be possible.

[CajunVic]

while the concept of using a Non-Compete appears to be well thought out on its face we must always remember that the law disfavors non-competes and will look at every avenue to void them if litigated and further, considering what the USSC did with the NCAA rules on compensation, there is no telling whether they would utilize the same analysis to wipe out non-competes - it would be, however, much more of a stretch for the USSC in the instance of non-competes as it was with the compensation rules of the NCAA.

[Turbine]

while the concept of using a Non-Compete appears to be well thought out on its face we must always remember that the law disfavors non-competes and will look at every avenue to void them if litigated and further, considering what the USSC did with the NCAA rules on compensation, there is no telling whether they would utilize the same analysis to wipe out non-competes - it would be, however, much more of a stretch for the USSC the instance of non-competes as it was with the compensation rules of the NCAA.

Well rounded insight.

Thanks