A Recent Ruling Overturning the FTC’s Ban on Non-compete Agreements: What It Means for Small Business Owners

September 9, 2024
  • A recent ruling by U.S. District Judge Ada Brown upheld the legality of non-compete agreements, blocking an FTC rule aimed at banning them.
  • Non-compete agreements prevent employees from working for competitors or starting their own businesses within a specified time and area after leaving a job, designed to protect sensitive business information.
  • FTC sought to ban these agreements in order to promote fair competition and empower employees to seek new job opportunities without fear of legal repercussions.
  • Business groups, including the U.S. Chamber of Commerce, oppose the ban on non-compete agreements, arguing they protect proprietary information, support small businesses' competitiveness, and promote workforce stability by reducing turnover.
  • Small business owners should ensure their non-compete clauses are reasonable and comply with legal standards while also focusing on building a strong company culture to retain talent.


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Recently, U.S. District Judge Ada Brown in Dallas blocked a Federal Trade Commission (FTC) rule aimed at banning non-compete agreements that employees typically sign. Judge Brown ruled that the FTC does not have the authority to eliminate practices it considers unfair competition through broad regulations. This decision follows a temporary ban imposed in July while she considered a challenge from the U.S. Chamber of Commerce, who wanted to invalidate the rule entirely. The FTC's regulation was supposed to take effect on September 4.


What is a non-compete agreement? 

Noncompete agreements are contracts that stop employees from working for competing companies or starting their own businesses within a certain time frame and geographic area after leaving their job. These agreements aim to protect sensitive business information and maintain a competitive edge, but they have faced criticism for limiting employee mobility and hindering wage growth.


The FTC's Justification for Banning Non-Compete Agreements

The Biden administration wanted to ban non-compete agreements as part of its broader effort to promote fair competition and enhance workers' rights in the job market. By restricting these agreements, the administration hoped to empower employees, giving them more freedom to pursue new job opportunities without the fear of legal repercussions from former employers. Moreover, the administration acknowledged that noncompete clauses can suppress wages and innovation, which may lead to slow economic growth. The goal was to create a more dynamic workforce, fostering competition and allowing workers to fully utilize their skills in a competitive economy.


Reasons for Business Groups' Lawsuits Against the Ban

Business groups, including the U.S. Chamber of Commerce, pushed back against the ban on non-compete agreements, arguing that these contracts are essential for protecting proprietary information and trade secrets. Many small businesses, which often operate with limited resources, depend on non-compete clauses to maintain their competitive edge and protect their investments in employee training. Additionally, employers argue that these agreements can promote stability in the workforce, preventing employees from leaving at the first offer and allowing companies to build knowledgeable teams without worrying about high turnover.


What Small Business Owners & Employers Need to Know

This ruling is significant for small business owners and employers. It reaffirms the legality of non-compete agreements, allowing them to enforce contracts that prevent employees from sharing proprietary information or directly competing for a certain time after their departure. However, it’s crucial for business owners to understand the legal details involved. Noncompete clauses need to be reasonable in terms of scope, duration, and geography to be enforceable. Small businesses should also stay informed about changes in workplace policies and ensure their practices comply with both federal and state laws, as regulations can differ greatly across regions.

While noncompete agreements can provide some protection, they shouldn’t be the only way to safeguard business interests. Employers should also focus on building a strong company culture and engaging employees to retain talent and reduce turnover. As the legal landscape continues to evolve, staying informed and compliant will be essential for small business owners facing this complex issue.



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The Leavenworth-Lansing Area Chamber of Commerce is a private non-profit organization that aims to support the growth and development of local businesses and our regional economy. We strive to create content that not only educates but also fosters a sense of connection and collaboration among our readers. Join us as we explore topics such as economic development, networking opportunities, upcoming events, and success stories from our vibrant community. Our resources provide insights, advice, and news that are relevant to business owners, entrepreneurs, and community members alike. The Chamber has been granted license to publish this content provided by Chamber Today, a service of ChamberThink Strategies LLC. 


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If you’ve ever parented a teenager, you know talking back is not to be celebrated. But when it comes to your business website, talking back is the next big trend. Most websites feel like digital brochures. You scroll, you click, you squint at tiny menus—and if you can’t find what you’re looking for in 20 seconds, you’re gone. On to the next one. But what if you landed on a website that immediately addresses your needs: “Hi there! Looking for a haircut, a color, or some products?” You type “Color,” and the site replies: “Excellent. Want to see our stylists’ availability this week?” No scrolling, no clicking, no calling. Just the information you want right away. That’s a conversational website—and it’s not just for tech giants. Thanks to new AI tools, even the smallest businesses can create sites that chat with customers, not just sit there looking pretty. Why Conversational Websites Could Be the Next Big Thing There are many benefits to a conversational website. Most visitors want quick answers but they don’t want to speak to a person. If they did, they would’ve called. This gives them the answers they want when they want them. Additionally, a conversational website can: Save time: Customers get quick answers any time of day or night instead of calling or emailing you. It will also save your employees time because they won’t have to put off customers to answer the phone or respond to an email. Make sales easier: Instead of a clunky order form, a friendly bot can walk people through the buying process step by step. With advances in AI and search, people are migrating away from typing answers and questions. Most rely on verbal commands and conversations. Search and inquiries are becoming more and more conversational. Feel personal: Customers want to feel seen, not like they’re filling out a tax form. A conversational flow makes your brand warmer and more approachable, especially when you create the tone for your virtual assistant. But I Can’t Code The good news is you don’t need to know a single line of code. Seriously. Tools are popping up every day that do the heavy lifting for you. 1. Build a Site Just by Talking to It Platforms like Wix’s AI Builder let you describe your business in plain English— “I run a bakery that specializes in birthday cakes and gluten-free treats.” —then it generates a full website, complete with text, design, and images. 2. Replace Boring Forms with Friendly Chats Instead of “Fill out this contact form,” tools like Landbot or Tidio turn that process into a conversation. Bot: “What’s your name?” Visitor: “Samantha.” Bot: “Hi Samantha! Want to see today’s specials or book a table?” Lead captured. Customer happy. 3. Let AI Test and Tweak Your Site for You  Services like Coframe quietly improve your site in the background. They test different headlines, buttons, and layouts to see what gets the most clicks—no knowledge of A/B testing required. A Few Tips to Keep It Human Even with all this cool tech, the magic is in your brand’s personality. Keep these best practices in mind: Use your voice. If you’re a playful boutique, let your chatbot be sassy. If you’re a financial planner, keep it calm and professional. Be clear it’s AI. Customers don’t mind chatting with a bot, but they do mind feeling tricked. There are some really good AIs out there. It may not be obvious to them that they are not talking to one of your employees. Be transparent about that. Guide people forward. Every conversation should end with a next step: “Book now,” “Call us,” or “See more.” Anticipate what would logically come next. Ready to Make Your Website Talk? Your customers (and potential customers) want quick answers, easy booking, and a sense that someone’s listening and understands what they want—even if that “someone” is AI. With today’s tools, you don’t need a tech team or a giant budget. You just need your unique voice and a willingness to let your website have a conversation instead of being a silent billboard. Internet interactions are becoming more conversational. Watch how people around you are using their phones. They’re talking to AIs more often than people. You want to make sure you’re prepared to answer them back. -------- Christina Metcalf is a writer and women’s speaker who believes in the power of story. She works with small businesses, chambers of commerce, and business professionals who want to make an impression and grow a loyal customer/member base. She is the author of The Glinda Principle , rediscovering the magic within. _______________________________________ Facebook: @tellyourstorygetemtalking Instagram: @christinametcalfauthor LinkedIn: @christinagsmith
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You've polished your website, perfected your elevator pitch, and your product or service genuinely solves real problems. Yet somehow, you keep attracting the wrong customers—the ones who haggle over every penny, make unreasonable demands, or disappear after one purchase. Meanwhile, your dream clients seem to float past, elusive, visiting but not buying. Why? As in any human relationship, you need to be more magnetic. If your answer is, “I’m trying,” then perhaps you’re creating the wrong kind of magnetic field around your brand. Opposites Don't Always Attract in Business Did you ever play with magnets? If you did, then you know magnets have two poles that create distinct fields of attraction and repulsion. Your business has something similar. Every decision you make, from your pricing strategy to your communication style, either attracts or repels specific types of customers. Most beginning businesspeople think success is about appealing to as many people as possible. Their marketing consists of claims like, “This is a great gift for everyone,” “This item fits everyone’s lifestyle.” But trying to appeal to everyone creates neutral magnetism that attracts no one strongly. Most customers don’t want to be everyone. They want to be spoken to in ways that catch their attention, such as “Creative architects love our tool,” or “We help people who hate doing yardwork get their weekend back.” Those types of callouts leave a potential customer thinking, “That’s me,” which inadvertently directs them to think, “That (product/service) is for me.” Speaking in Your Customer's Natural Wavelength Additionally, your ideal customers operate on distinct "business frequencies," that’s to say, patterns of decision-making, communication preferences, and value systems that are surprisingly predictable within industries and personality types. Most businesses broadcast on a "Generic FM"—bland, safe messaging that technically reaches everyone but resonates with no one. Your competition is probably doing the same thing, which is why customers can't tell you apart. Tuning Into the Right Station Let's say you run a marketing agency. Instead of saying "We help businesses grow," try identifying your ideal client's specific “frequency”: ● The Overwhelmed Entrepreneur: "For entrepreneurs who lie awake at 2 AM wondering why their great product isn't selling itself" ● The Scaling Company: "When your scrappy startup marketing tactics hit a wall at $2M revenue" ● The Corporate Escapee: "Marketing services for executives who fled corporate life and swore they'd never work with agencies that speak in buzzwords again" Each message repels two groups while magnetizing one and that's exactly what you want. Availability Affects Attraction Many small businesses are getting it backwards. They think being constantly available and accommodating makes them more attractive. 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She works with small businesses, chambers of commerce, and business professionals who want to make an impression and grow a loyal customer/member base. She is the author of The Glinda Principle , rediscovering the magic within. _______________________________________ Instagram: @christinametcalfauthor LinkedIn: @christinagsmith