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.
Posted By Brandy King
July 21, 2025
Category: General
Earlier this month before we left for a long holiday weekend, we gathered all of our employees at Spooner’s Westlake headquarters to celebrate an amazing 50 years in business! We celebrated with sunshine, great food, a few cold beverages, and live music. If you’ve been a client for a while, you may have heard the story of how our founder, Tom Spooner, started our family of companies in 1975. For those that haven’t, we like it so much that it takes up most of our “About Us” section, so you can read it there. The abridged version is: we started with grit and determination, and found ways to disrupt the industry in the interest of Ohio employers. Tom Spooner felt then, as our leadership team feels today, that Ohio business big and small need a true partner when it comes to risk management. We’re beyond proud to be that partner to thousands of businesses. While we’ve been lucky enough to experience tremendous growth over the last five decades, we’ve been cautious about keeping that growth organic and maintaining the values and integrity that got us here. We love what we do, and that passion is a big part of what’s kept our client retention rate hovering over 98% for countless consecutive years. We’d like to thank our incredible staff and leadership, and our trusting clients for helping us achieve this milestone. Here’s to the next
Posted By Brandy King
July 21, 2025
Category: General
The Occupational Safety and Health Administration (OSHA) recently proposed some sweeping changes to longstanding regulations. OSHA published a whopping 25 proposed rules and one final rule on July 1, 2025. The proposed rules encompass several different topics related to worker health and safety. Some of the proposals will impact very narrow groups of employers and industries, and a few may have a substantial impact on a large number of U.S. employers. OSHA’s commentary on these changes indicates a goal of removing unnecessary regulatory burdens on employers, while also streamlining OSHA’s regulatory process. The only final rule put into place (and effective immediately) eliminates the need for OSHA’s administrator to seek opinions of the Advisory Committee on Construction Safety and Health before publishing, changing, or revoking standards that apply to construction work. Below are a few high notes from some of the more broadly applicable proposed regulations. Remember that OSHA’s rulemaking process requires them to publish these proposed changes and allow time for public commentary and feedback. The links above and below lead to the Federal Register site, where the full details of the suggested changes can be accessed along with the feedback submission form. Highlights of Notable Proposed Rules Application of the General Duty Clause: This could be the change that causes the most stir and elicits the most feedback. While the General
Posted By Brandy King
July 21, 2025
Category: General
Ohio BWC has opened the application period the Safety Intervention Grant (SIG) Program, which matches eligible state-fund employers $3 to $1 on investments to create a safer workplace. Most employers who have had an Ohio BWC policy for at least one year, are paying above minimum premium ($120+), current on installments and true ups with no lapses this year should be able to take advantage. Self-insuring employers, employers in a self-insured PEO, state agencies and state universities are not eligible. Every three years, eligible employers can apply for up to $40,000 in matching funds to purchase “equipment to substantially reduce or eliminate injuries and illnesses associated with a particular task or operation.” The first thing to note is that if your organization wants to benefit from the Safety Intervention Grants, you must complete this process before purchasing equipment. Be prepared with info on workers’ comp claims or incidents associated with the particular area or task, number of employees performing the task, and explore vendors to get price quotes on equipment. As always, there are items and services that grant funds can’t be used for - like standard PPE, training, equipment needed to meet minimum OSHA requirements, etc. A detailed moratorium can be found here. Of course, there are usually a few strings attached when money is given away. There are reporting requirements once the grant is approved. To avoid getting too
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