Could the 2024 Election Let Employees Take Your Trade Secrets? Here's What You Need to Know. The U.S. Court has suspended the FTC's ban, but it's not going to go away.

Last April, the Federal Trade Commission issued its final rule banning most non-compete agreements that took effect after September 4, 2024. At the time, many of my clients were very concerned about this because non-compete agreements, or clauses in existing employment contracts, have been a standard way to protect their companies if an employee leaves their business and goes to work for a competitor. This could potentially lead to the employee taking trade secrets and other proprietary information with them.

But there is good news for employers.

For now, everything's on hold. That's because of a July ruling by the U.S. District Court for the Northern District of Texas, which was finalized on August 20 and "prevents the FTC from enforcement of the rule against any company nationwide."