Recruiting Agency Awarded $3,640,132.60 in Lawsuit Against Former Employee

On Tuesday, August 20, a Texas federal court issued a national injunction preventing enforcement of the FTC's rule banning noncompete agreements. The court's ruling is attached below. This outcome was predicted here when the rule became effective in April: FTC Ban on Noncompete Agreements Not Likely

With attorney's fees, Catapult now owes BioPoint $7,554,402, plus accrued interest. BioPoint will soon be in a position to pursue collection activities if the judgment is not paid. This could include garnishing Catapult's bank account and clients who owe fees.

Ruling conflicts with Texas court ruling - final outcome still undetermined Stay Informed - 60 Day Free Trial Subscription As previously reported here, there are two pending federal court lawsuits challenging the Federal Trade Commision's rule banning non-compete agreements in the United States. Background here: FTC’s Non-Compete

SLN has been following a case involving an attempted workforce transfer by a staffing firm client. The client, Alstom Transportation, attempted to move the workers of System One to its new staffing supplier, Acara Solutions. System One was of course not happy about this and sued Alcara under two theories:

Judge declines to enter national injunction The Federal Trade Commission's rule banning all non-complete agreements, slated to become effective on September 4, 2024, has generated much commentary since it was approved in April of this year. When the Rule came out in April, Staffing Legal news noted: "