Court Sets Deadline for FTC’s Response to Chamber’s Motion to Enjoin Non-Compete Rule - Companies Should Know What to Do, if anything, Regarding the Rule in June

Benesch
Contact

Benesch

As we reported last week, the FTC voted to enact its Rule banning non-competes and the lawsuits quickly followed. Although three lawsuits have been filed so far, the lawsuit to watch is the United States Chamber of Commerce lawsuit filed in the United States District Court for the District of Texas. The FTC has appeared in the case and agreed to respond to the Chamber’s Motion to Stay and/or Enjoin the Rule by May 15th. The Chamber will then have until May 28th to file its reply in support of the Motion to Stay and/or Enjoin, and we expect the court to rule shortly thereafter. Accordingly, companies should know in June whether the Rule will be enacted (and thereby require companies to come into compliance within 120 days of the Rule being published in the Federal Register) or enjoined. As mentioned in the Q&A we sent out moments after the FTC voted to enact the Rule, we believe the Rule will be enjoined and therefore recommend that companies not take any action regarding the Rule at this time. We will issue a client alert as soon as the court enters its ruling.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Benesch | Attorney Advertising

Written by:

Benesch
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

Benesch on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide