On August 20th Judge Ada Brown issued a Memorandum Opinion and Order setting aside the FTC’s Non-Compete Rule. In doing so Judge Brown expanded the preliminary injunction she had previously issued. Judge Brown issued a nationwide, permanent injunction and stated the “Rule shall not be enforced or otherwise take effect on its effective date of September 4, 2024 or thereafter”.
Employers can breathe a sigh of relief because their noncompete agreements will now not automatically be null and void. But, employers should still make sure their existing and proposed noncompete and other restrictive covenant agreements ( like non-solicitation agreements and confidentiality agreements) comply with applicable state law. Employers should also consider whether a noncompete is really the best way to protect the business from unfair competition, or are other means a better choice.
Tennessee Employment Law 