In a win for ABC members, on Aug. 20, the U.S. District Court for the Northern District of Texas blocked the Federal Trade Commission from implementing its rule to ban noncompete agreements. The court found that the FTC lacked statutory authority to promulgate the rule and that the rule is arbitrary and capricious. This means the rule will not be enforced or otherwise take effect on Sept. 4, 2024. According to media reports, the FTC is considering appealing the decision. To learn more about the decision, read ABC’s general counsel Littler Mendelson’s analysis.

On Aug. 15, the U.S. Department of Defense issued a proposed rule, Assessing Contractor Implementation of Cybersecurity Requirements, which seeks to implement contractual requirements for DOD contracts related to the recently proposed Cybersecurity Maturity Model Certification 2.0 Program. Comments on the proposed rule are due Oct. 15.

On Aug. 1, the Senate Health, Education, Labor, and Pensions Committee voted to advance two nominees to the National Labor Relations Board. Democrat Lauren McFerran’s nomination to serve another term as chair passed in a party-line vote, 11-10. The nomination of Republican Josh Ditelberg passed with a bipartisan vote of 18-3. A full Senate vote on these two nominations is not yet scheduled.

Effective Jan. 1, 2024, the Corporate Transparency Act requires certain entities, including many small businesses, to report information about the individuals who ultimately own or control them (also known as their “beneficial owners”) to the Financial Crimes Enforcement Network, a bureau of the U.S. Department of the Treasury.