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Update on Non-Compete Ban for 2025

FTC’s Non-Compete Ban Blocked, But Gray Area Remains

In early 2023, the Federal Trade Commission (FTC) introduced and finalized a rule banning the use of non-competes. Employers, Chambers of Commerce and trade organizations rallied against the new rule claiming it was anti-employer, some going as far as calling it “blatantly awful.” As expected, the change was met with litigation and in August of 2024, the ban was  struck down by a federal judge in Texas who claimed the FTC overstepped its authority by issuing the rule.

A non-compete (or non-competition agreement) is an agreement in which the employee agrees not to engage in conduct or activities that could increase competition for their employer. These types of arrangements are prevalent in finance, healthcare, design, tech and all types of sales or business development roles. They’re meant to protect things like trade secrets, privileged info and client retention. Non-competes aren’t the same as non-solicitation clauses. These agreements err more toward not calling on your former clients in your new role. Here’s an example of differentiating between the two.

Non-Compete: “Upon leaving ABC Company, you may not engage in a similar role for another insurance company within a 50-mile radius.”

Non-Solicitation: “Upon leaving ABC Company, you may not solicit (contact/call on) clients of ABC Company in your new role with another insurance company.”

For now, both are still on the table, and being able to continue utilizing them is a win for employers. So, are the non-competes you have in place enforceable? This is where some employers need to take the win with a grain of salt. Non-competes have never truly been 100% enforceable across the board. If a company employs someone in a very niche role, with specific knowledge about a limited subject matter, a non-compete telling that person they can’t work for a competitor within 1000 miles may not hold up. They are enforceable in Ohio as long as the agreement is “reasonable” in terms of geography, duration and specific business interest being protected. As many empolyers have learned with ADA, the word “reasonable” can be very subjective.

The FTC has already appealed this decision, and we’ll keep you updated as any changes occur.

 

Most Recent

Group Retro Lawsuit - We Won the Final Round!

Posted By Brandy King
April 03, 2026 Category: Ohio BWC, Group Retro, 2018 Group Retro, 2019 Group Retro, Group Retro Refunds Withheld

Ohio Supreme Court Decision Reinforces Workers’ Compensation Rules — Even During COVID Although the verdict came on April Fool's Day, the decision issued by Ohio's highest court was no joke: administrative agencies must follow their own rules — even during extraordinary circumstances. Spooner Incorporated is proud to have been the only Third-Party Administrator (TPA) in Ohio that supported our clients in this fight, advocating for fair and proper administration of the Group Retrospective (Retro) rating program. What Happened? The Ohio Supreme Court ruled that the Ohio Bureau of Workers’ Compensation (BWC) must still administer its group retrospective rating program for the 2018 policy year, even though those employers received dividends in 2020 equal to 100% of their 2018 premiums. During the first year of the COVID-19 pandemic, BWC issued a one-time dividend to policyholders as financial relief from the impact COVID had on Ohio businesses. Following that, the agency declined to perform group retrospective calculations for the 2018 and 2019 policy years (or make associated payouts), arguing that the dividend effectively replaced any potential refunds. The team at Spooner disagreed, along with our valued client Kent Elastomer and trusted partners at Roetzel & Andress - and a six-year legal battle ensued. Read more about the background here.  Why This Matters to Employers This ruling reinforces a critical legal

Rehashing the Complexities of Marijuana in the Workplace

Posted By Brandy King
February 02, 2026 Category: Medical Marijuana, Drugs In The Workplace, Marijuana Rescheduled, Marijuana Breathalyzer, Cannabix, Thc Breath Test

Toward the end of 2025, President Trump signed an executive order directing the U.S. Department of Justice (DOJ) to expedite the rescheduling of marijuana from Schedule I to Schedule III under the Controlled Substances Act. This is monumental in that it acknowledges that marijuana does, in fact, have valid clinical/medical uses and has low-to-moderate potential for abuse. Only four states in the U.S. still regard cannabis as being fully illegal, while another six allow only the cannabinoid CBD, which is known not to produce psychoactive effects. All other states have some version of legal or decriminalized marijuana, be it medical, recreational, or a combination of both. The first thing that’s important to note and is widely misunderstood is that this rescheduling does not legalize marijuana federally. As of January 28, 2026, Marijuana is still a Schedule I drug, since the Drug Enforcement Agency (DEA) has not yet finalized this rule. Once they do cement this change, there could be some wide-sweeping changes to drug testing. The Department of Health & Human Services (HHS) currently only allows testing for Scheduled I and II substances for federal and regulated drug-testing programs followed by DOT-regulated employees and other safety-sensitive positions. Truck drivers, pilots, transit operators, railroad employees, and pipeline workers are all currently subject to mandatory drug and alcohol testing, including marijuana. There has been talk of a

Unemployment Services with Spooner

Posted By Brandy King
February 02, 2026 Category: Ohio, Unemployment, Hr Outsourcing, Unemployment Claims, Fraud

If you haven’t considered trusting Spooner’s family of companies with managing your unemployment claims, maybe you’re not sure what it entails and how much time and hassle it could save. You may have also tried outsourcing this to another vendor in the past and found that their approach really didn’t save you much of anything. The team at Spooner Risk Control (which encompasses both Spooner Inc and SuretyHR) boasts over 15 years of experience managing unemployment claims, including an attorney that will represent your company at hearing. Many clients that are new to using our unemployment services have shared that past vendors still required them to log into their portal, submit all the responses and paperwork, then the vendor would send to the state. Our approach is to simply ask for the documentation, submit, and take care of everything. As an unemployment services client, you’d be asked to sign a third-party representation form that will allow any unemployment-related forms and letters to come directly to us so you’re not always the go-between. Here’s a run-down of the services you can expect as an Unemployment Services client: Monitor and report all new unemployment claims and notifications Submission of claims and responses after requesting information from the employer and submission of any rebuttals  File and submit appeals on any base period unemployment notifications or allowed claims File appeals to the

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