The Non-Compete Conundrum: The Ban, The Backlash, And What’s Next

By G. Scott Fiddler and Michael A. Drab

In April of last year, the FTC voted to implement its final rule prohibiting non-compete agreements in the workplace. The rule, as a practical matter, eliminated the patchwork of non-compete statutes and common law adopted on a state-by-state basis. It also was designed to greatly reduce the use and enforceability of non-compete and non-solicitation agreements, except in the narrowest of circumstances.

Insights • October 6, 2025

Supreme Court Lowers Burden of Proof for FLSA Overtime Exemptions

By Michael Drab and David Schlottman

On January 15, 2025, the Supreme Court for the United States issued an opinion interpreting the standard of proof employers must meet to establish the applicability of an exemption to the overtime requirements of the Fair Labor Standards Act (“FLSA”).

Insights • January 22, 2025

FTC Rule Banning Non-Competes Found Unenforceable

By G. Scott Fiddler and Michael A. Drab

On Tuesday, August 20, 2024, employers throughout the country breathed a sigh of relief when a federal trial judge in Dallas struck down the FTC’s rule banning non-competes. It brought to a conclusion a tumultuous and chaotic summer that had turned employers and workers into court-watchers.

Insights • August 28, 2024

Court Issues Injunction Against Enforcement of FTC Non-Compete Rule

By G. Scott Fiddler and Michael Drab

A federal court in the Northern District of Texas has issued an injunction against enforcement of the Federal Trade Commission’s rule banning non-compete agreements, which is scheduled to go into effect on September 4, 2024. The Court has stated it intends to issue a ruling on the merits on August 30, 2024, less than a week before the Rule is scheduled to take effect.

Insights • July 9, 2024

Federal Trade Commission Issues Rule Banning Non-Competes in the Workplace

On April 23, 2024, in a 3 to 2 vote, the Federal Trade Commission (FTC) voted to implement its final rule prohibiting non-compete agreements in the workplace.

By G. Scott Fiddler and Michael Drab

Insights • April 25, 2024

Minimum Wage Hike for Federal Contractors Halted in the Fifth Circuit

By David Schlottman and Michael A. Drab

On January 1, 2023, a new regulation from the Department of Labor took effect that raised the minimum hourly wage applicable to certain federal contractors to $16.20. But this past Tuesday (September 26, 2023), a federal judge in Victoria, Texas, entered an injunction prohibiting the DOL from enforcing the rule in the states of Texas, Louisiana, and Mississippi.

Insights • September 29, 2023

Department of Labor Proposes Expanding Overtime Eligibility to Millions

By David Schlottman and Michael A. Drab

You may soon be required to pay your salaried employees more. On August 30, 2023, the Department of Labor issued a new proposed regulation that would raise the minimum salary required to invoke the commonly used “white-collar” exemptions to overtime from $684 per week (or $35,568 annually) to $1,059 per week (or $55,068 annually). Additionally, the proposed regulation would raise the minimum annual salary required to claim the highly compensated employee exemption from $107,432 to $143,988.

Insights • September 1, 2023

Second Circuit Narrows Defend Trade Secrets Act Remedies

By Michael A. Drab and Leisa Talbert Peschel

The Second Circuit just raised the bar for recovering avoided costs as unjust enrichment in a Defend Trade Secrets Act (“DTSA”) case. With a successful DTSA claim, a trade secret owner may obtain an injunction against further use or disclosure of the trade secrets, recover actual damages, and recover damages for unjust enrichment caused by the misappropriation not otherwise included in the damages award.

Insights • June 5, 2023

Indiana to Further Restrict Physician Non-Competes

By Michael A. Drab

On April 25, 2023, the Indiana Senate passed an amendment banning non-compete agreements with primary care physicians (defined as physicians practicing family medicine, general pediatric medicine, and internal medicine) executed on or after July 1, 2023. The current version, originally introduced as an outright ban, represents a series of compromises between the Indiana House and Indiana Senate. Governor Eric Holcomb is expected to sign the bill into law.

Insights • May 4, 2023

Imagine There’s No Non-Competes | Texas Lawyer (Subscription Required)

On Jan. 5, 2023, the Federal Trade Commission proposed a rule that would prohibit non-compete agreements in every workplace in the United States and greatly limit their use in business transactions. The proposed rule has us imagining a Texas without non-competes, asking how we got here, and how the FTC’s proposed rule might affect Texas businesses.

By G. Scott Fiddler and Michael Drab

Insights • February 15, 2023

Federal Trade Commission Announces New Proposed Ban on Non-Competes in the Workplace

By G. Scott Fiddler and Michael Drab

On January 5, 2023, the Federal Trade Commission announced a proposed regulation that would prohibit non-compete agreements in the workplace. The proposed rule follows on the heels of a statement issued by the FTC in November 2022 declaring its intention to exercise authority under Section 5 of the FTC Act and an earlier Executive Order issued by President Biden in July 2021 urging the FTC to promulgate new rules governing non-competes.

Insights • January 20, 2023

Supreme Court Addresses Federal Arbitration Act’s Residual Clause, But Circuit Split Remains Regarding Personal Jurisdiction in FLSA Cases

By Lionel Schooler, David Schlottman, & Michael Drab | On June 6, 2022, the Supreme Court addressed two cases involving employment law issues.

Insights • June 9, 2022

Key Highlights from OSHA’s COVID-19 Vaccination and Testing Emergency Temporary Standard

Update: On January 25, 2022, OSHA announced it is withdrawing the vaccination-or-test emergency temporary standard. The withdrawal will be published in the Federal Register and take effect on January 26. The standard will remain in the federal register as a notice of  proposed rulemaking. Expect the Department of Labor to move to dismiss pending litigation as moot. Challengers to the vaccination-or-test rule will have to voice their concerns during the notice and comment period.

Insights • January 26, 2022

What Federal Contractors Need to Know About the New Minimum Wage Requirements

By Michael Drab | Effective January 30, 2022, the hourly minimum wage for employees of federal contractors will be $15.00 ($10.50 for tipped workers), and will increase annually based on inflation. This article discusses requirements issued by the U.S. Department of Labor for the order.

Insights • January 17, 2022