Haynes and Boone, LLP Partner Laura O’Donnell spoke with the Wall Street Journal and Fox 4 News after the Federal Trade Commission voted to ban noncompete agreements, a decision that could impact nearly one in five American workers.
Following the vote, the US Chamber of Commerce and Ryan LLC sued to block the new rule from taking effect. O’Donnell talked to both outlets about the legal outlook.
Wall Street Journal:
“The Chamber frequently sues the federal government over regulations it says were erroneously drafted or exceed an agency’s authority. The Chamber and Ryan filed their lawsuits in conservative judicial districts where courts have been skeptical of what they see as federal agency overreach.
‘I think the venue increases the chance that the rule is enjoined pretty quickly,’ said Laura O’Donnell, an employment and labor litigator for Haynes Boone in San Antonio.
The law on noncompetes varies by state. Texas, for instance, allows the contracts if employees have access to confidential information or were given specialized training, O’Donnell said. California bans them, which allows talented engineers and other sought-after workers to change jobs easily.”
To read the full article in the Wall Street Journal, click here.
Fox 4 News:
The FTC chairwoman says the change will create more competition and better wages for employees.
‘I think the development that happened has a potentially titanic or seismic, change for relationships between employers and workers,’ said Laura O'Donnell, a labor attorney for Haynes Boone.
…
The clause spans multiple career fields, from casino workers to doctors and journalists.
‘One of the huge things about this rule is not just invalidating noncompete agreements going forward, but invalidating noncompete agreements that currently exist and requiring companies to give notice to employees to almost all employees or workers that, hey, your noncompete is not enforceable,’ said O'Donnell.
To watch and read the full story from Fox 4, click here.
