PCS receives many questions about the non-compete ban. Here is the most recent information.
The 2023 FTC ruling essentially banned using non-competes in almost every business sector. Healthcare was not excluded. The law prohibited the use of any future non-competes but also retroactively made all existing non-competes unenforceable. Several states filed suits to stop the law in their states. This week, a Federal Court ruled the law an action beyond the rulemaking authority of the FTC, essentially invalidating the law. Although the law is no longer in effect, court appeals are inevitable as there is massive support for this law.
You can read more about the FTC ban on non-competes in our original article here: PracticeComplianceSolutions.com/FTC-effectively-bans-all-non-competes/
PCS also receives many questions about the Corporate Transparency Act and the court cases that have come since.
To review, the Corporate Transparency Act was passed to document ownership in US corporations. Several parties filed class action lawsuits against this law; one case was heard in Federal Court and initially ruled the law invalid. However, the Court later clarified that the ruling applied only to the plaintiffs who brought the initial suit. This was a very small group in a special interest group. As of now, the Act is still in place for everyone else with required compliance by January 1, 2025. All corporations must comply, and fortunately, the process is fairly simple. You can go to https://www.fincen.gov/ to file. Fines for non-compliance are up to $10,000 per entity.
You can read more about the Corporate Transparency Act in our original article here: PracticeComplianceSolutions.com/the-corporate-transparency-act/
