A Recent Ruling Overturning the FTC’s Ban on Non-compete Agreements: What It Means for Small Business Owners

September 9, 2024
  • A recent ruling by U.S. District Judge Ada Brown upheld the legality of non-compete agreements, blocking an FTC rule aimed at banning them.
  • Non-compete agreements prevent employees from working for competitors or starting their own businesses within a specified time and area after leaving a job, designed to protect sensitive business information.
  • FTC sought to ban these agreements in order to promote fair competition and empower employees to seek new job opportunities without fear of legal repercussions.
  • Business groups, including the U.S. Chamber of Commerce, oppose the ban on non-compete agreements, arguing they protect proprietary information, support small businesses' competitiveness, and promote workforce stability by reducing turnover.
  • Small business owners should ensure their non-compete clauses are reasonable and comply with legal standards while also focusing on building a strong company culture to retain talent.


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Recently, U.S. District Judge Ada Brown in Dallas blocked a Federal Trade Commission (FTC) rule aimed at banning non-compete agreements that employees typically sign. Judge Brown ruled that the FTC does not have the authority to eliminate practices it considers unfair competition through broad regulations. This decision follows a temporary ban imposed in July while she considered a challenge from the U.S. Chamber of Commerce, who wanted to invalidate the rule entirely. The FTC's regulation was supposed to take effect on September 4.


What is a non-compete agreement? 

Noncompete agreements are contracts that stop employees from working for competing companies or starting their own businesses within a certain time frame and geographic area after leaving their job. These agreements aim to protect sensitive business information and maintain a competitive edge, but they have faced criticism for limiting employee mobility and hindering wage growth.


The FTC's Justification for Banning Non-Compete Agreements

The Biden administration wanted to ban non-compete agreements as part of its broader effort to promote fair competition and enhance workers' rights in the job market. By restricting these agreements, the administration hoped to empower employees, giving them more freedom to pursue new job opportunities without the fear of legal repercussions from former employers. Moreover, the administration acknowledged that noncompete clauses can suppress wages and innovation, which may lead to slow economic growth. The goal was to create a more dynamic workforce, fostering competition and allowing workers to fully utilize their skills in a competitive economy.


Reasons for Business Groups' Lawsuits Against the Ban

Business groups, including the U.S. Chamber of Commerce, pushed back against the ban on non-compete agreements, arguing that these contracts are essential for protecting proprietary information and trade secrets. Many small businesses, which often operate with limited resources, depend on non-compete clauses to maintain their competitive edge and protect their investments in employee training. Additionally, employers argue that these agreements can promote stability in the workforce, preventing employees from leaving at the first offer and allowing companies to build knowledgeable teams without worrying about high turnover.


What Small Business Owners & Employers Need to Know

This ruling is significant for small business owners and employers. It reaffirms the legality of non-compete agreements, allowing them to enforce contracts that prevent employees from sharing proprietary information or directly competing for a certain time after their departure. However, it’s crucial for business owners to understand the legal details involved. Noncompete clauses need to be reasonable in terms of scope, duration, and geography to be enforceable. Small businesses should also stay informed about changes in workplace policies and ensure their practices comply with both federal and state laws, as regulations can differ greatly across regions.

While noncompete agreements can provide some protection, they shouldn’t be the only way to safeguard business interests. Employers should also focus on building a strong company culture and engaging employees to retain talent and reduce turnover. As the legal landscape continues to evolve, staying informed and compliant will be essential for small business owners facing this complex issue.



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The Leavenworth-Lansing Area Chamber of Commerce is a private non-profit organization that aims to support the growth and development of local businesses and our regional economy. We strive to create content that not only educates but also fosters a sense of connection and collaboration among our readers. Join us as we explore topics such as economic development, networking opportunities, upcoming events, and success stories from our vibrant community. Our resources provide insights, advice, and news that are relevant to business owners, entrepreneurs, and community members alike. The Chamber has been granted license to publish this content provided by Chamber Today, a service of ChamberThink Strategies LLC. 


January 13, 2026
75% of hiring managers have encountered lies on resumes, posing a challenge to the trustworthiness of applicant qualifications. Pruning outdated or irrelevant job experiences from resumes can help applicants highlight their most recent and pertinent skills. Checking for employment gaps can uncover important character traits or red flags, such as incarceration, which can be further explored through background checks. Up to 85% of job seekers admit to lying on resumes about aspects like job duties and skills, making independent verification crucial. Handling discovered resume discrepancies with professionalism and aligning hiring decisions with organizational values are key. Investing in thorough verification processes, despite initial costs, is essential for reducing long-term expenses related to unproductive wages, training, and turnover. 554 words ~ 2.5 min. read In today's job market, it's quite common for applicants to exaggerate on their resumes. A surprising find by CareerBuilder shows that 75% of hiring managers have spotted lies on resumes. This highlights a big problem in hiring - how can employers trust what's on a resume? With the honesty of candidate qualifications on the line, it's important for hiring managers to find reliable ways to check the accuracy of resumes to make good hiring decisions. Read on to discover three strategies to help you fast-track the fact-checking process. Prune Old Jobs Pruning old jobs simply means removing any outdated or irrelevant information. For example, if an applicant lists a job that they held 10 years ago and haven't worked in that field since, there's a good chance their skills are no longer up-to-date. The hiring platform Indeed reminds job hopefuls to prioritize their most recent and relevant experience , so including historical work experience may also signal a lack of confidence in applying for an intended position. Check for Gaps Another way to verify the accuracy of an applicant's resume is to check for gaps. This means looking for any periods of time where there is no employment listed. These gaps could be due to a variety of reasons, such as taking time off to raise a family or going back to school. However, they could also be due to something less savory, such as incarceration. Including a background check will reveal gaps due to jail time but also other important things you may want to know like criminal arrest records or driving history. Resume gaps aren’t always a bad thing, of course. They may reveal an applicant’s character or important values, with gaps devoted to honing their leadership skills through volunteering for schools or charitable organizations. What you do with your understanding of these blank spaces is what’s important — use them to weed out applicants or to ascertain if a candidate is a value match during the interview process. 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If you do hire someone and later discover the lie, experts recommend confronting the employee to learn more. If you want to terminate the employee, get legal counsel first. Takeaway Devoting time and resources to outside services will increase your hiring costs upfront. However, when you factor in the price tag for unproductive wages, in addition to training, firing, and rehiring costs, investing in a thorough verification process becomes a vital hiring and retention strategy. Read More: 10 Ways to Get the Most from your Chamber Membership Hiring in a Tight Market: Your Local Playbook for Finding and Keeping Great People The New Employee Benefit Everyone is Talking About The Power of 'Entry Interviews' and 'Stay Interviews' Strategies for Improving Employee Retention in Small Businesses --- The Leavenworth-Lansing Area Chamber of Commerce is a private non-profit organization that aims to support the growth and development of local businesses and our regional economy. We strive to create content that not only educates but also fosters a sense of connection and collaboration among our readers. Join us as we explore topics such as economic development, networking opportunities, upcoming events, and success stories from our vibrant community. Our resources provide insights, advice, and news that are relevant to business owners, entrepreneurs, and community members alike. The Chamber has been granted license to publish this content provided by Chamber Today, a service of ChamberThink Strategies LLC.
January 13, 2026
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This, in turn, paves the way for achieving long-term success and sustainable growth. Read More: From Conflict to Collaboration: Turning Workplace Disputes into Growth Opportunities Hiring in a Tight Market: Your Local Playbook for Finding and Keeping Great People Rock Stars Vs. Superstars: Who's Fueling Your Team's Future?  --- The Leavenworth-Lansing Area Chamber of Commerce is a private non-profit organization that aims to support the growth and development of local businesses and our regional economy. We strive to create content that not only educates but also fosters a sense of connection and collaboration among our readers. Join us as we explore topics such as economic development, networking opportunities, upcoming events, and success stories from our vibrant community. Our resources provide insights, advice, and news that are relevant to business owners, entrepreneurs, and community members alike. The Chamber has been granted license to publish this content provided by Chamber Today, a service of ChamberThink Strategies LLC.
January 12, 2026
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You can connect the dots between daily tasks and real impact. Remind employees how their work serves customers, supports the community, or strengthens the business. Specific recognition is powerful. Instead of a generic “good job,” try “That follow-up you did helped retain that longtime client. Great work.” Purpose grounds people when external circumstances feel shaky. It also provides them with ideas of what you and the business value. Encourage connection, not forced positivity Team connection doesn’t require mandatory happy hours or constant cheerleading. In fact, forced positivity can backfire. What people crave is authentic connection. Create space for check-ins that aren’t solely about tasks. Ask how people are doing and mean it. Sometimes support looks like listening, not fixing. A team that feels connected is more resilient when facing uncertainty together. Model calm, realistic leadership Your team takes emotional cues from you, whether you intend it or not. That doesn’t mean you need to pretend everything is fine. It means showing that challenges can be faced with composure and thoughtfulness, not short-tempered flares. Calm leadership isn’t about having all the answers. It’s about demonstrating that uncertainty can be navigated with intention. When you model steadiness, you give your team permission to do the same. Remember small actions compound Support doesn’t have to be dramatic to be effective. Small, consistent actions build trust over time. Things like clear communication, reasonable flexibility, and genuine recognition compound quietly, like interest in a well-managed account. In uncertain times, employees don’t expect perfection. They want leadership that feels human, grounded, and responsive. Robotic repetition of the company line doesn’t instill confidence. Uncertainty may be part of the landscape these days, but how you lead through it is still very much within your control. Read More: 5 Professional Development Practices That will Elevate Your Team's Success Five Strategies for Leading Through Emotionally Charged Times From Conflict to Collaboration: Turning Workplace Disputes into Growth Opportunities Ignite and Empower Your Team with Verbal Feedback Mastering Emotional Agility: A Vital Leadership Skill for Modern Workplaces ------- Christina Metcalf is a writer, ghostwriter and women’s speaker who believes in the power of story. She works with small businesses, chambers of commerce, and business professionals who want to make an impression and grow a loyal audience. She’s the author of The Glinda Principle , rediscovering the magic within. _______________________________________ Facebook: @metcalfwriting Instagram: @christinametcalfauthor LinkedIn: @christinametcalf5