Solutions at the speed of now

On September 30, 2022, the Financial Crimes Enforcement Network (“FinCEN”) published its final rule to implement beneficial ownership reporting requirements set forth in the Corporate Transparency Act (the “CTA”).   The CTA and related rules went into effect in 2023 and, as a result thereof, filings of Beneficial Owner Information (“BOI”) are required by many companies with FinCEN, a department of the U.S. Department of the Treasury.  For entities formed prior to January 1, 2024, that are subject to the CTA’s reporting requirements, please note the forthcoming filing deadline of January 1, 2025.

On Tuesday, August 20, a Texas federal judge set aside the FTC’s “Non-Compete Rule” (the “Rule”).  This decision comes just two weeks before the FTC’s nationwide ban on non-competes was set to take effect.  The Court stated the FTC overstepped its authority in issuing the Rule, calling it “arbitrary and capricious” and found that the FTC’s sweeping ban on non-competes was overly broad and ignored the valid business interests non-competes serve.  Many employees may now breath a sigh of relief now that the Rule is on hold indefinitely.  However, the Rule is not completely out of the game just yet.