News & Analysis as of

Employer Liability Issues Competition

Franczek P.C.

FTC Ban on Non-Competes Is Blocked — For Now

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Back in April 2024, the Federal Trade Commission (FTC) issued a final rule that would have banned non-compete agreements nationwide as of September 4, 2024. (You can read our alert on the FTC’s final rule here.) However, on...more

Poyner Spruill LLP

FTC’s Non-Compete Ban Is On Hold, For Now

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Earlier this year, we wrote about the Federal Trade Commission (FTC) enacting a final rule to ban most all forms of non-compete agreements between employers and employees in the United States (available here).  The ban was...more

Farrell Fritz, P.C.

Court Strikes Down FTC’s Non-Compete Ban

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On Tuesday, August 20, 2024, the United States District Court in Texas found the FTC rule banning non-compete agreements to be “arbitrary and capricious.”...more

Polsinelli

Court Rules that the FTC Rule Banning Non-Competition Clauses in Employment Agreements is Unlawful and Order Has “Nationwide...

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On August 20, 2024, the Northern District of Texas in the case of Ryan, LLC v. Federal Trade Commission granted summary judgment to the Plaintiff Ryan, LLC, enjoining the FTC from implementing its rule banning non-compete...more

Winthrop & Weinstine, P.A.

FTC Non-Compete Ban Blocked; Will Not Take Effect on September 4, 2024

Employers concerned about the enforceability of restrictive covenants can breathe a little easier for now. A Texas federal court has blocked the Federal Trade Commission’s (“FTC’s”) final rule banning non-compete agreements...more

Troutman Pepper

FTC Noncompete Rule Risks a Wave of State AG Actions

Troutman Pepper on

On April 23, the FTC promulgated its final rule banning noncompetes nationwide. Originally published in Law360 - May 23, 2024....more

Skadden, Arps, Slate, Meagher & Flom LLP

FTC Noncompete Rule Is Set Aside, But Appeal Is Expected and States May Act

On August 20, 2024, in Ryan LLC v. Federal Trade Commission, a district court in the Northern District of Texas held “unlawful and set[] aside” the Federal Trade Commission’s (FTC) Non-Compete Rule, 16 C.F.R. § 910.1–.6. That...more

Baker Botts L.L.P.

Court Strikes Down FTC’s Non-Compete Ban

Baker Botts L.L.P. on

On July 10, 2024, we sent you an update informing you that Judge Ada Brown of the United States District Court for the Northern District of Texas had entered a preliminary injunction blocking the Federal Trade Commission...more

PilieroMazza PLLC

FTC Non-Compete Ban Will NOT Become Effective September 4, 2024

PilieroMazza PLLC on

As suspected and previewed in PilieroMazza’s April 24, 2024 blog, a Texas federal judge permanently blocked the Federal Trade Commission’s (FTC) impending restriction on non-competition agreements (Non-Compete Rule). This...more

Littler

Texas Court Sets Aside the FTC’s Non-Compete Rule with Nationwide Effect

Littler on

Employers that rely on non-compete agreements to protect their trade secrets and other legitimate business interests got some welcome news on August 20. The Federal Trade Commission’s (FTC) final non-compete rule, which seeks...more

Stinson LLP

FTC Ban on Worker Non-Competes Halted by Federal Court

Stinson LLP on

On August 20, 2024, a Texas federal court judge issued an order halting the Federal Trade Commission's (FTC) non-compete rule, preventing it from taking effect on September 4, 2024. The order, issued by Judge Ada Brown, held...more

Polsinelli

Texas Federal Judge Blocks FTC Non-Compete Ban

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This week, Judge Ada E. Brown of the U.S. District Court for the Northern District of Texas in Ryan v. The Federal Trade Commission upheld a challenge by business groups to the FTC’s non-compete ban. In addition to confirming...more

Lowndes

FTC Non-Compete Ban is Banned

Lowndes on

On August 20, 2024, a federal court in Texas permanently blocked the Federal Trade Commission's (FTC) final rule banning most non-competes. U.S. District Judge Ada Brown granted summary judgment in favor of the plaintiffs in...more

Robinson+Cole Health Law Diagnosis

A Federal Court in Texas Strikes Down the FTC’s Nationwide Non-Compete Ban

On August 20, 2024, the United States District Court for the Northern District of Texas (Dallas Division) struck down the Federal Trade Commission’s (FTC) non-compete rule, 16 CFR § 910.1-6, that was set to take effect...more

Stradling Yocca Carlson & Rauth

Texas Court Holds ‘Em Off: FTC’s Impending Ban On Non-Competes Likely To Fold

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...more

Hinckley Allen

Texas Court Invalidates FTC Noncompete Ban: Key Takeaways

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On August 20, a federal court in Texas issued an order invalidating the Federal Trade Commission’s (FTC) ban on noncompete agreements (Final Rule), which had been set to take effect on September 4, 2024. The decision, issued...more

Vinson & Elkins LLP

“No More Non-Competes,” Part Four: Texas Federal District Court Blocks FTC Noncompete Rule on Nationwide Basis

Vinson & Elkins LLP on

On August 20, 2024, the U.S. District Court for the Northern District of Texas entered a final judgment (“Order”) setting aside, on a nationwide basis, the Federal Trade Commission (“FTC”) final rule (“Rule”) prohibiting...more

Shumaker, Loop & Kendrick, LLP

Client Alert: Federal Court Blocks FTC’s Non-Competition Ban

As reported in Shumaker’s prior Client Alert, on April 23, 2024, the Federal Trade Commission (FTC) implemented a Final Rule banning nearly all non-competition agreements as of September 4, 2024. Under this Final Rule,...more

Moore & Van Allen PLLC

FTC’s Non-Compete Ban Blocked

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Bottom line: As of Tuesday night, the FTC’s non-compete rule has been set aside, cannot be enforced, and will not become effective on September 4, 2024. As an update to our prior alert regarding the Federal Trade...more

Shutts & Bowen LLP

Breaking News: Federal Judge Blocks Nationwide Implementation of the FTC’s New Rule Banning Noncompete Agreements

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On August 20, 2024, U.S. District Judge Ada Brown in Texas issued a final order in the pending case, Ryan v. FTC, holding that the Federal Trade Commission (FTC) exceeded its authority in issuing a ban on noncompete clauses....more

Wyrick Robbins Yates & Ponton LLP

Client Update: Texas Court Strikes Down FTC Rule on Employee Non-Competes

We recently provided a Client Alert providing an update on the status of the Final Rule (the “Rule”) issued by the Federal Trade Commission (the “FTC”), which would make most covenants not to compete between employers and...more

Wilson Sonsini Goodrich & Rosati

FTC Non-Compete Ban Blocked Nationwide

On August 20, 2024, a federal district court in Texas blocked the final rule issued by the Federal Trade Commission (FTC) that would have prohibited all for-profit employers nationwide from using non-compete agreements with...more

DarrowEverett LLP

What Texas Court’s Decision on Non-Competes Means for Businesses

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The Federal Trade Commission’s (FTC) ambitious attempt to implement a nationwide ban on non-compete agreements (with limited exceptions) has hit a significant legal roadblock. On August 20, 2024, U.S. District Judge Ada Brown...more

Seyfarth Shaw LLP

Federal Texas Court Sets Aside with “Nationwide Effect” the FTC Rule Banning Non-Competes

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Once again surprising the country by acting ten days before her own self-appointed deadline, a federal judge in the United States District Court for the Northern District of Texas issued a ruling on August 20 in the Ryan v....more

FordHarrison

Federal District Court Blocks FTC's Noncompete Rule

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Real World Impact: Making good on her promise to make a ruling on the FTC Noncompete Rule on or before August 30, 2024, United States District Judge Ada Brown granted a motion for summary judgment that sets aside the FTC...more

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