A federal judge in Texas has halted the FTC’s nationwide ban on noncompete agreements, making a national ban increasingly unlikely. However, many states are enacting laws to limit noncompetes, with Minnesota, California, North Dakota, and Oklahoma implementing blanket bans. The Texas ruling is expected to be appealed, alongside similar cases in Florida and Pennsylvania, which may lead to further legal battles in a Supreme Court skeptical of federal regulatory power. Despite challenges, the FTC may still influence change through softer measures.
Meanwhile, the NLRB is examining whether restrictive covenants violate labor laws, which could lead to further legal challenges. Businesses are advised to use noncompetes strategically, focusing on specific employees rather than blanket policies.
NIST has released a second draft of its Digital Identity Guidelines, enhancing options for digital identity and anti-fraud measures, including details on mobile driver’s licenses and online passkeys. The guidelines aim to balance secure online access with in-person verification, incorporating feedback from various stakeholders. Comments on the draft are open until October 7, and NIST is also collaborating with technology providers to explore mobile driver’s license use cases in financial and government services.
Non-competes are indeed problematic, and should only be deployed strategically. Senior, key leadership? Yes. Blanket? Bad idea. Regardless of how the law shakes out, that’s the current reality.
Passkeys remain a solution I’m endorsing, and NIST adopting more guidance should make it easier for vendors to adopt them. As IT services providers, it’s important to include this on your list of asks.