Am I the only one dealing with what's the current status???

Heard the FTC banned non-competes but then it got blocked? I have a job offer from a competitor but my current employment agreement has a 1-year non-compete. Am I bound by it or not? So confused.

I'm in Texas, employer is in Texas, new job would be in Texas. My non-compete says 1 year, nationwide, same industry.

Ngl texas generally enforces non-competes if they're: (1) ancillary to an otherwise enforceable agreement, (2) supported by consideration (like confidential information access), and (3) reasonable in time/scope/geography imo.

"Nationwide" might be overbroad and a court could narrow it. 1 year is usually considered reasonable. Key question: did you have access to confidential information or customer relationships that would harm them if you joined a competitor?

@jurys_out_11 that's true but not always. I got a C&D letter when I joined a competitor. They didn't sue but made my life difficult for 6 months. New employer almost rescinded the offer. Worth understanding the risk before assuming they won't enforce

Best approach: (1) tell potential new employer about the non-compete upfront, (2) ask if they'll provide legal defense if your current employer takes action, (3) get an employment lawyer to review your specific situation before accepting. Consultation is usually $200-500 and could save you a lot of pain.

Bumping this thread with an update. The Fifth Circuit heard oral arguments in the FTC appeal back in October. Still waiting on a decision but most legal commentators expect the court to uphold the district court's ruling blocking the ban. The new administration has signaled they're not prioritizing this rule anyway.

Meanwhile, several states have been tightening their own non-compete restrictions. Minnesota banned them entirely for employees in mid-2023 (joining CA, ND, OK). New York came close but the governor vetoed it.

Update for anyone following: I ended up taking the new job. Disclosed the non-compete to the new employer, they had their counsel review it, and they were comfortable proceeding. My old employer sent a cease and desist letter but never actually sued. It's been over a year now and nothing came of it.

Lesson learned: the non-compete was mostly a scare tactic. That said, I was a mid-level employee with no client relationships or real trade secrets. YMMV if you're more senior.

Glad it worked out @is_this_even_legal_10. Your experience is pretty typical for non-executive employees.

For 2024, I'd advise anyone dealing with non-competes to: (1) check your state's current law since things are evolving fast, (2) understand that the FTC ban is effectively dead for now, and (3) focus on what's actually in your agreement rather than hoping federal rules will save you. State-level reform is where the action is.