The Uncertain Future of the FTC Ban on Employment Non-Compete Agreements

Courtney Lytle Sarnow
Courtney Lytle Sarnow
CM Law

Courtney Sarnow is a partner in the Atlanta office of CM Law with over twenty-five years of experience in a broad-based transactional practice with a specific focus on intellectual property and technology.

Thomas J. Mihill (TJ)
Thomas J. Mihill (TJ)
Stites & Harbison, PLLC

TJ is experienced in arbitration, mediation and negotiation as well as traditional litigation. As a licensed neutral, he has mediated over 150 cases. He is a member of the firm's Intellectual Property & Technology Service Group.

On-Demand: February 19, 2025

2 hour CLE

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Program Summary

In April of 2024, the Federal Trade Commission banned the use of non-compete agreements in an employment setting. Before the ban could take effect in September 2024, a legal challenge was successful, and the ban was blocked based on the court’s finding that the FTC exceeded its authority in banning non-competes based on unfair competition. The FTC has since begun its appeal of that ruling to the 5th Circuit, so the future of the ban is still uncertain.

In the meantime, what can employers legally do? How can they best protect their interests if non-compete agreements are now questionable in terms of enforceability? This seminar will go over the history and current status of the ban and offer flexible strategies for employers who formerly relied on these agreements to protect their interests.

This course is co-sponsored with myLawCLE.

Key topics to be discussed:

  • History of the Ban
    • The FTC justification of the ban as unfair competition
    • Judicial review of the ban in Ryan LLC v. Federal Trade Commission and the rationale for blocking imposition of ban
    • Recent announcement of appeal to the 5th Circuit; what outcome is likely?
  • Impact of the Ban
    • Employee considerations
    • Employer considerations
    • Flexible strategies for dealing with relevant considerations

Closed-captioning available

Speakers

Courtney Lytle Sarnow_myLawCLECourtney Lytle Sarnow | CM Law

Courtney Sarnow is a partner in the Atlanta office of CM Law with over twenty-five years of experience in a broad-based transactional practice with a specific focus on intellectual property and technology. She has developed a distinctly creative and problem-solving approach to address client plans and issues. As a young attorney, Ms. Sarnow learned that focusing on what a client can’t do and shouldn’t do is unnecessarily limiting and seldom helps the client maximize corporate opportunities. Her approach of looking for ways to accomplish corporate goals within an informed legal framework is more valuable for growth focused, technology forward companies than a stereotypical corporate counsel who instinctively thwarts innovation.

Early in her career with Dow, Lohnes & Albertson in Atlanta, she worked in the Mergers & Acquisitions Group and in IP Licensing with traditional clients, as well as some unusual NASCAR and Professional Bull Rider representation thrown in from time to time. This gave her an appreciation for creative clients. After a sojourn in Philadelphia at Temple University as a Teaching Fellow earning an LLM in Law Teaching and studying developing issues in computer law and software licensing, she returned to Atlanta to teach as an Adjunct at Emory Law and develop a practice focused on intellectual property protection and general corporate strategies for artists, inventors and innovative entrepreneurial ventures.

 

speaker_Thomas J. Mihill (TJ)Thomas J. Mihill (TJ) | Stites & Harbison, PLLC

TJ Mihill is a Member in the firm’s Atlanta office where his practice focuses on intellectual property, business law and litigation, construction, fiduciary law, and estate and probate matters. TJ is experienced in arbitration, mediation and negotiation as well as traditional litigation. As a licensed neutral, he has mediated over 150 cases. He is a member of the firm’s Intellectual Property & Technology Service Group.

TJ represents individuals and corporations in the registration of copyrights and trademarks, as well as handling trademark and copyright infringement claims, trade secret violations, and cybersquatting actions. He is particularly active in internet and video game law. In addition to representing video game designers and game design companies, TJ has litigated infringement actions in state and federal courts on behalf of authors, artists, and musicians. He also represents clients in licensing and royalty disputes.

TJ represents clients in litigation, mediation, and arbitration at the state and federal level, both throughout Georgia and nationwide. His practice covers a wide variety of business litigation issues, including actions to enforce or defend against restrictive covenants, professional liability, shareholder disputes, and various breach of contract, tort, and fraud actions. TJ also practices in the area of real property law with experience in premises liability actions, easement issues, and commercial and residential landlord/tenant disputes.

Additionally, TJ represents contractors, subcontractors, and property owners in construction disputes, including actions relating to mechanic’s and materialmen’s liens. He has handled numerous defective construction claims from initial compliance with the Georgia Right to Repair Act through arbitration or trial.

Agenda

I. History of the Ban | 1:00pm – 2:00pm

  • The FTC justification of the ban as unfair competition
  • Judicial review of the ban in Ryan LLC v. Federal Trade Commission and the rationale for blocking imposition of ban
  • Recent announcement of appeal to the 5th Circuit; what outcome is likely?

Break | 2:00pm – 2:10pm

II. Impact of the Ban | 2:10pm – 3:10pm

  • Employee considerations
  • Employer considerations
  • Flexible strategies for dealing with relevant considerations during the current period of uncertainty and in the event the ban is reinstated
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