Courts Now Split on Enforceability of FTC Noncompete Rule
On July 23, 2024, the Eastern District of Pennsylvania denied a company’s motion to enjoin the enforcement of the FTC’s rule banning nearly all noncompetes. This contradicts the Northern District of Texas’s order on July 3, 2024, which granted a preliminary injunction enjoining the rule as it applies to the plaintiffs in that case. With opposing rulings, employers remain in limbo as the rule’s September 4, 2024 enforcement date approaches. Employment attorneys Shannon Hamilton, Robin McGuffin, and Zac Losey take a look at what happened.
USPTO to Do a Deep Dive on Deepfakes
The United States Patent and Trademark office (“USPTO”) has stated that it will be holding a roundtable on August 5, 2024, to address whether current laws are sufficient to protect individuals from the unauthorized reproductions of their voice, image, or likeness commonly referred to as “deepfakes.” Attorney TJ Mihill takes a look at the what the USPTO is looking for in this Stites & Harbison Client Alert.
FTC Non-Competition Final Rule Update
On July 3, 2024, a Texas federal Northern District Court granted a preliminary injunction to the Plaintiff and the four Intervening Plaintiffs in the matter of Ryan v. Federal Trade Commission. The preliminary injunction enjoins the Federal Trade Commission’s (“FTC”) Final Rule prohibiting non-competition agreements from being implemented and enforced as to the Plaintiff and Intervening Plaintiffs only. In addition, the Court enjoined the effective date of the Final Rule, again limiting the injunction to the Plaintiff and Intervening Plaintiffs only. Employment attorney Shannon Hamilton takes a look at the update in this Stites & Harbison Client
Department of Labor Overtime Rule Becomes Effective!
The Department of Labor’s (“DOL”) Final Rule increasing the salary level for exempt positions and increasing the number of employees eligible for overtime goes into effect today, July 1, 2024, for all 50 states, with the exception of the state of Texas as an employer. The Overtime Rule does apply to private employers in Texas. Employment attorney Shannon Hamilton takes a look at what that means to employers in this Stites & Harbison Client
News of the Death of Workers’ Jobs at the Virtual Hands of AI is Greatly Exaggerated
Artificial Intelligence (AI) is being touted as having the potential to save humanity or destroy it. On the saving side there is the possibility for drug discoveries, disease (e.g. cancer) diagnosis for early detection and cure, and energy discovery and efficiency. Stephen Weyer takes a look at the world AI in this Stites & Harbison Client
Protecting Employer Proprietary Information Following the FTC's Ban on Non-Compete Agreements
The Federal Trade Commission (FTC) on April 23, 2024 issued a rule banning future non-compete agreements with limited exceptions. The FTC rule bans virtually all non-compete agreements for employees and independent contractors. Pre-existing non-compete agreements with senior executives remain enforceable, but new non-competes with senior executives are not. Likewise, non-competes entered into pursuant to a sale of a business or person’s ownership stake in a business are exempt from the FTC rule. Pat Torre takes a look at the rule in this Stites & Harbison Client
You Have a Voice: The Supreme Court Rules Everyone Except for “Truly Peripheral Parties” May Participate in Chapter 11 Proceedings
Learning that a bankruptcy which may impact you has been filed can be disconcerting. Bankruptcy navigates a complicated statutory framework that strikes a delicate balance between a debtor’s interest in financial rehabilitation and the creditors’ interest in maximizing their recoveries. Compounding this complexity is §1109(b) of the Bankruptcy Code, which governs the rights of “parties in interest” to participate in Chapter 11 restructurings. But are you a party with a voice in the case? In Truck Insurance Exchange v. Kaiser Gypsum Co., Inc. et al., the Supreme Court has brought some clarity to this issue.
Checking in on the Status of the Fair Labor Standards Act Exempt Salary Threshold Increase
It is a little under two weeks until the July 1, 2024, effective date for the U.S. Department of Labor’s Final Rule (the “Final Rule”) raising the minimum salary level requirement for exempt white-collar employees to $43,888 annually. Now is the time to check in on the status of any legal challenges which might effect that deadline and employment attorney Shannon Hamilton takes a look at those challenges in this Stites & Harbison Client