Konopka Advises Businesses to Exercise Caution with Non-Competes Amid Legal Uncertainty in Kansas City Business Journal

07.26.2024

Stinson LLP Partner Pat Konopka is featured in a Kansas City Business Journal article, "Court battles against FTC noncompete ban create tricky business environment," providing comments on the Federal Trade Commission's new rule banning non-competes and the legal challenges facing the rule.

Konopka highlights the uncertainty surrounding the rule's enforcement and the potential for additional legal battles to ensue. She provides insight into conflicting court rulings regarding the agency's authority to enact the ban and explores the possibility of the U.S. Supreme Court's involvement if the courts have different opinions on the rule's legality. "When there are competing decisions on something like this, where there might be different things you have to do in different parts of the country, it’s a factor that could weigh toward one of the courts issuing a nationwide injunction until it all gets sorted out by the courts," she said.

Businesses should exercise caution regarding non-competes, as the matter varies from state to state. Even if the FTC rule faces a national injunction, "it's important to consider that even in states like Kansas and Missouri that allow the use of noncompete agreements, when you look at decisions in the courts, they all start with the premise that noncompetes are something of a restraint on trade and should be very strictly construed and not overly broad," she said.

Konopka counsels employers on all aspects of employment law and human resources practices. Leveraging her experience litigating employment-related lawsuits, she helps clients efficiently resolve disputes and regularly conducts internal investigations into alleged misconduct, harassment or discrimination claims. Konopka also advises clients on ensuring their employment policies and practices adhere to legal compliance standards.

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