Employment Law This Week – Episode 397: FTC and Florida Focus on Non-Competes, SCOTUS to Rule on Pension Withdrawal Liability [Video, Podcast]

Key Takeaways:

• The FTC has extended its timeline by 60 days to decide on the federal non-compete ban.
• Florida’s CHOICE Act doubles non-compete agreement durations from two to four years.
• The new law simplifies injunctive relief, strengthening employer enforcement of non-competes.
• Florida’s changes position it as one of the most employer-friendly states.
• The Supreme Court will rule on pension withdrawal liabilities, impacting financial calculations for pensions.

FTC Delays Decision on Non-Compete Ban

The Federal Trade Commission (FTC) has requested an additional 60 days to decide if it will continue defending the proposed federal non-compete ban. This extension suggests that the rule may soon be withdrawn, leaving the future of non-compete agreements at the federal level uncertain. Employers and employees alike are closely monitoring the situation, as a federal ban could significantly impact employment contracts nationwide.

Florida Expands Non-Competes with CHOICE Act

In contrast to the federal hesitation, Florida is moving forward decisively. The state’s new Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act extends the allowable duration of non-compete agreements for covered employees from two to four years. This doubling of the time frame marks a substantial shift in employment law within the state.

“Florida’s new CHOICE Act now allows non-compete agreements for covered employees to span up to four years, doubling the previous limit,” the National Law Review reports.

Enhanced Enforcement for Employers

Beyond extending non-compete durations, the CHOICE Act simplifies the process for employers to secure injunctive relief when enforcing these agreements. By streamlining legal procedures, Florida has made it easier for businesses to protect their interests against competition from former employees.

These changes, combined with the extended non-compete terms, position Florida as one of the most employer-friendly states in the country. Employers may find the state’s legal environment increasingly attractive, while employees may face longer restrictions on their post-employment activities.

SCOTUS to Rule on Pension Withdrawal Liability

Amid these significant state and federal developments, the Supreme Court of the United States (SCOTUS) is poised to make a critical ruling on how pension withdrawal costs are calculated. This decision could carry substantial financial consequences for employers responsible for pension plans and for retirees relying on pension income.

The outcome of the case will determine the financial obligations of companies withdrawing from pension plans, potentially reshaping retirement funding and corporate financial strategies.

Implications for the Employment Landscape

These concurrent developments at the federal, state, and judicial levels underscore a dynamic and shifting employment law landscape. Employers must navigate an evolving regulatory environment, balancing the benefits of stronger protections with the challenges of compliance.

Employees, on the other hand, may experience extended limitations on their career mobility due to longer non-compete periods and could be affected by changes in pension funding.

Staying informed is crucial for all parties as these legal changes unfold, potentially reshaping the norms of employment agreements and benefits in the years to come.