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. 


February 2, 2026
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Not “menu, reviews, newsletter, and follow us on Instagram.” Before you generate a code, finish this sentence: “When someone scans this, I want them to _____.” Order ahead. Pay a bill. Join a waitlist. Watch a demo. Book an appointment. Leave a review. If you can’t answer that clearly, the QR code isn’t ready yet. Confusion kills scans faster than bad Wi-Fi. Match the QR Code to the Moment Context matters more than placement. A QR code on a table should help someone who is already seated. A QR code at checkout should help someone who is already paying. A QR code on packaging should help someone who already bought. Too many businesses ask customers to change mental gears. Someone standing in line does not want to read your brand story. Someone browsing your storefront does not want to fill out a five-field form. Ask yourself what problem exists in that exact moment and solve only that. Send Them to a Mobile-friendly Destination This sounds obvious but it is also the most common mistake. If your QR code leads to a desktop-only website, a tiny PDF, or a page that takes more than three seconds to load, you’ve lost the scan. Best practices here are non-negotiable: • Mobile-optimized page • Minimal text • Clear headline • One primary action • No pinching or zooming required A QR code is an express lane. Don’t route it through construction. Tell People What They’ll Get Never assume people will scan just because a square exists. Add a short, human instruction: · “Scan to view today’s specials” · “Scan to reorder in under 30 seconds” · “Scan for the how-it’s-made video” You’re not selling the QR code. You’re selling the outcome. The more specific the payoff, the higher the scan rate. Use Dynamic QR Codes Whenever Possible S tatic QR codes are set in stone. Dynamic QR codes let you change the destination later without reprinting anything. That flexibility matters more than you think. Menus change. Links break. Campaigns evolve. A dynamic code protects your investment and lets you adapt without starting over. It also gives you data. Scans by time, location, and device help you see what’s actually working instead of guessing. Design for Visibility, not Decoration QR codes do not need to be pretty. They need to be scannable. Follow these design rules: • High contrast between code and background • Adequate white space around the code • Large enough to scan from the intended distance • No visual clutter nearby If someone must tilt their phone, squint, or move closer than expected, the moment is gone. Brand colors are fine. Artistic distortion is not. Respect Trust and Privacy Customers are cautious. A QR code that feels sketchy will be ignored. Avoid sending people directly to: • Download prompts without explanation • Login walls • Overly long forms • Anything that looks unrelated to where they are If you’re collecting information, say so. If you’re offering value, lead with that. Trust is part of the user experience. Test Like a Customer, not an Owner Scan every QR code yourself. Then have someone else scan it. Try different phones. Try different lighting. Try it on cellular data, not office Wi-Fi. Ask: • Does it load quickly? • Is it obvious what to do next? • Would I scan this again? If the answer isn’t a confident yes, fix it before it goes live. Measure Results, Then Prune QR codes are not “set it and forget it.” Check performance monthly. Retire codes that don’t get used. Improve the ones that do. Replace vague destinations with clearer ones. A few high-performing QR codes will always beat a dozen ignored ones. Note to restaurants and those employing QR menus: COVID created a need for using QR codes to replace physical menus. Some restaurants (and service providers) are enjoying the freedom and cost reduction from using these codes instead of paper menus. There's nothing wrong with this unless your audience finds it annoying. Understand the demographic you're serving and their preferences. Some groups find the lack of a physical menu to be a barrier instead of a quicker way to see it. If that's the case with your audience, you may be losing money because they don't feel like scanning the QR code again to view the drink or dessert menu. Upsells and additions will be less likely. Used well, QR codes are invisible helpers. They shorten lines, speed decisions, and remove tiny annoyances your customers may never articulate but absolutely feel. But remember: the goal isn’t more scans; it’s smoother experiences. Read More: - How Small Businesses Can Lead Innovation - How to Make Time for Innovation - Keeping Up with Tech ------------ Christina Metcalf is a writer 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 customer/member base. She is the author of The Glinda Principle , rediscovering the magic within. _______________________________________ Medium: @christinametcalf Facebook: @tellyourstorygetemtalking Instagram: @christinametcalfauthor LinkedIn: @christinagsmith
January 26, 2026
Small business owners are usually not short on ideas. You have them in the shower, in the car, halfway through a client call, and even in the middle of the night. Ideas for a new service. A better way to onboard customers. A partnership you should pursue. A social post series that would actually sound like you. No, the problem is not creativity. The problem is action. Most good ideas don’t die because they were bad. They die because they never get translated into a next step while they’re still exciting. That’s why you need the 48-Hour Rule. The rule is simple: If an idea doesn’t have a next action plotted and scheduled within 48 hours, it’s not a plan. It’s entertainment. This is not a judgment on your executing abilities. It’s your business. The urgent pulls harder than the important. And once an idea slips behind payroll, customer emails, and the Tuesday fire drill, it rarely climbs back out. So, let’s talk about how to make the 48-Hour Rule work in real life with time limits. Why 48 Hours Works (And “Someday” Doesn’t) A new idea creates a burst of clarity. You can see the path. You can picture the result. You feel a little lighter because you’ve imagined a better version of your business. But clarity fades fast. In 48 hours, two things happen: Reality returns. Your current workload reasserts itself or you start doubting your abilities, your team’s abilities, your customer’s interests, or any other number of things that begin to cause… The idea starts to feel bigger than it is. You forget the simple version and only remember the “perfect” version. This becomes next to impossible to put into action. The 48-Hour Rule protects your idea from both. It forces you to do one thing before the moment passes: choose the next action . Not the whole plan. Not the branding. Not the full rollout. Just the next action. The Difference Between an Idea and a Next Action An idea is fun, creative, exciting, while a next action is specific, physical, and schedulable. It’s something you can do without needing another meeting with yourself. Shy away from your action being “research.” It’s easy to get lost in it with little to show. Here are examples: Idea: “We should improve customer follow-up.” Next action: “Draft a two-email follow-up template and save it in the CRM.” Idea: “We should partner with another business.” Next action: “Write one partnership pitch email and send it to two businesses by Friday.” Idea: “We should raise prices.” Next action: “List top 10 services, current prices, and margins in a spreadsheet by Thursday at 10 a.m.” If you can’t schedule it, it’s not a next action. How to Implement the 48-Hour Rule Without Blowing up Your Week If you’re excited about your new idea, get something scheduled, even during a busy week. Try this: Step 1: Capture the idea in one sentence. Not five paragraphs. One sentence. Put it in a running note on your phone or a single “Idea Parking Lot” document. Step 2: Write the smallest next action. 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Use your chamber for the kind of next actions that matter: Ask them to make an introduction that leads to a partnership or something specific you need Attend one event and meet your next vendor or client Join one committee and get closer to decision-makers Ask one question and get practical insight from business owners who’ve been there Your idea may be game changing, but you won’t know until you execute. You may not have time to get it completely worked out and implemented, but you do have time to start with a 20-minute next step. Try the 48-Hour Rule this week. Then let your chamber help you turn that first step into a path. Read More: Embracing Imperfection to Strengthen Your Business How Small Businesses Can Lead Innovation How to Make Time for Innovation Revenue Without Regret: Designing Offers You're Proud to Sell Scaling Your Impact: From Dore to Delegator to Developer  -------------- Christina Metcalf is a writer 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 customer/member base. She is the author of The Glinda Principle , rediscovering the magic within. _______________________________________ Facebook: @tellyourstorygetemtalking Instagram: @christinametcalfauthor LinkedIn: @christinametcalf5
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