While this decision means that the rule will not go into effect next month, uncertainty will continue as the FTC considers whether to appeal the decision. In the meantime, employers should remember that state laws continue to apply, and indeed, that some states may pass new legislation limiting or prohibiting such agreements.

The FTC’s new rule, as well as other recent measures seeking to eliminate restrictions on labor by both the FTC and DOJ, have left companies weighing how to navigate employee contracts and whether to continue using non-competes, and if so, in what circumstances. Although the rule already is being challenged in court, companies should begin evaluating what the rule will mean for their employment contracts and how to effectively protect their information in the event the ban is…