Non-Compete Agreements for Employees

In this edition of Regulation Matters, we will be discussing recent federal development in noncompete rules. A noncompete restriction is a contractual agreement between two parties that one of them will not compete in a related business or market. In January 2023, the Federal Trade Commission (FTC) took legal action against three companies and two individuals, forcing them to drop noncompete restrictions that they imposed on employees. Those actions marked the first time that the agency has sued to halt unlawful noncompete restrictions. According to the complaints issued by the FTC, the companies and individuals illegally imposed noncompete restrictions on workers in positions ranging from low-wage security guards to manufacturing workers to engineers that barred them from seeking or accepting work with another employer or operating a competing business after they left the companies. In its complaints, the FTC said the restrictions constituted an unfair method of competition under Section 5 of the FTC Act. In each case, the FTC ordered the companies to cease enforcing, threatening to enforce, or imposing noncompete restrictions. The companies were also required to notify all affected employees that they are no longer bound by the noncompete restrictions.

Just one day later, the FTC proposed a new rule that would ban employers from imposing noncompetes. That proposed rule’s comment period will end this month. According to FTC Chair Lina M. Khan, “The freedom to change jobs is core to economic liberty and to a competitive, thriving economy. Noncompetes block workers from freely switching jobs, depriving them of higher wages and better working conditions, and depriving businesses of a talent pool that they need to build and expand. By ending this practice, the FTC’s proposed rule would promote greater dynamism, innovation, and healthy competition.” However, her opinion is not shared by Commissioner Christine S. Wilson who wrote a blistering dissent, arguing:

“The proposed Non-Compete Clause Rule represents a radical departure from hundreds of years of legal precedent that employs a fact-specific inquiry into whether a non-compete clause is unreasonable in duration and scope, given the business justification for the restriction. The Commission undertakes this

by Earl Cooke TIADA DIRECTOR OF COMPLIANCE AND BUSINESS DEVELOPMENT

radical departure despite what appears at this time to be a lack of clear evidence to support the proposed rule. What little enforcement experience the agency has with employee non-compete provisions is very recent (within the last week) and fails to demonstrate harm to consumers and competition.”

Since the proposed rule was issued, the FTC hosted a public forum on February 16 examining the FTC’s proposed rule to prohibit employers from imposing noncompetes on their workers, thereby providing an opportunity for people to directly share their experiences with noncompetes and has taken comments from the public. In a Wall Street Journal opinion piece the U.S. Chamber of Commerce has stated it will “oppose the proposed regulation with all the tools at our disposal, including litigation.” As such, it is fully expected that litigation is likely to occur, and this law will not fully take effect until a later date. TIADA will continue to monitor the noncompete proposed rule and issue further guidance at the appropriate time. Also, please note that this proposed rule has an exemption for noncompetes related to the purchase and sale of a business.

by Stephen Pallas TIADA Director of Marketing and Communications

How to Enter

Select the song you think is the best ever song about cars and driving in each matchup. The option chosen by most members in each matchup will advance. Two points will be awarded for each correct pick in round one, four points in round two, six points for the next round, and eight points if you select the winner. Complete your bracket and email it to info@txiada.org or fax to 512.244.6218 by March 24th. We will announce the winner on April 6th in the industry email and in the April issue of Texas Dealer.

The Contenders

Cars and driving have been a popular theme in music for decades, with countless songs written about the freedom, adventure, and romance of life on the road. Here are 16 of the best songs about cars and driving that have become iconic and enduring classics of the genre.

“Born to be Wild” by Steppenwolf – This 1968 classic is one of the most famous and enduring rock songs of all time, with its memorable opening line “Get your motor running, head out on the highway” becoming an anthem for the counterculture movement of the era.

“ On t he Road Again” by Willie Nelson – This 1980 country hit celebrates the joy and freedom of life on the road, with its catchy melody and twangy vocals capturing the spirit of the open road.

“Mustang Sally” by Wilson Pickett – This 1966 R&B classic has been covered by numerous artists over the years, and remains a beloved song about the joys of cruising in a fast car.

“Low Rider” by War – This funky 1975 hit celebrates the culture of lowriding, with its laid-back groove and catchy chorus making it a favorite of car enthusiasts everywhere.

“Little Red Corvette” by Prince – This 1983 pop hit uses the metaphor of a car to describe a lover, with its catchy melody and catchy chorus making it one of Prince’s most famous and beloved songs.

“I C an’t Drive 55” by Sammy Hagar – This 1984 hard rock hit expresses frustration with the speed limit and the desire to live life in the fast lane, with its driving beat and powerful vocals making it a favorite of rebellious drivers.

“Life is a Highway” by Tom Cochrane – This 1991 hit uses the metaphor of a highway to describe the ups and downs of life’s journey, with its catchy melody and uplifting lyrics making it a beloved song of hope and resilience.

“Drive My Car” by The Beatles – This 1965 classic is one of The Beatles’ most famous songs, with its memorable guitar riff and catchy chorus making it a timeless ode to the joys of driving.

“Fast Car” by Tracy Chapman – This 1988 hit tells the story of a young couple trying to escape poverty and build a better life, with its haunting melody and poignant lyrics making it one of the most powerful and memorable songs about driving.

“Mercedes Benz” by Janis Joplin – This 1971 acapella song was one of Joplin’s last recordings before her death, and is a biting satire of consumer culture and the desire for luxury cars and material possessions.

“ C ars” by Gary Numan – This 1979 hit features a distinctive electronic sound and robotic vocals, with its lyrics exploring the isolation and detachment of modern society and the desire for escape through driving.

“Radar Love” by Golden Earring – This 1973 hit is a driving rock anthem with a catchy guitar riff and memorable chorus, telling the story of a truck driver on a long-distance journey and the woman he loves.

“Hot Rod Lincoln” by Commander Cody – This 1972 country-rock hit tells the story of a high-speed car chase and the thrill of driving a powerful hot rod, with its catchy melody and humorous lyrics making it a favorite of car enthusiasts.

“Drive” by The Cars – This synth-pop classic from the early 1980s is a driving, upbeat song that captures the spirit of cruising down the highway with the radio blaring, with the band’s distinctive sound and catchy chorus making it an enduring favorite.

“Highway to Hell” by AC/DC – With its harddriving riff and powerful vocals, this 1979 hard rock classic is an anthem of rebellion and the rock and roll lifestyle, with lyrics that depict a journey on a highway leading to hell.

“ C adillac Ranch” by Bruce Springsteen – This energetic, rock and roll song pays tribute to the power and freedom of American cars, with a particular focus on the iconic Cadillac. The title is a reference to a public art installation in Amarillo, Texas featuring ten Cadillac cars buried nose-first in the ground.

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