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Non-Compete Agreements › Statutory Authority

Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a... more +
Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -
Vinson & Elkins LLP

2024 Chemicals & Energy Antitrust Report

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The re-election of former President Donald J. Trump is poised to significantly alter the landscape of antitrust enforcement, particularly within the energy and chemical industries. While the incoming administration has yet to...more

Stevens & Lee

FTC Files Opening Brief in Noncompete Rule Appeal

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On Jan. 2, 2025, the Federal Trade Commission (FTC or Commission) filed its opening brief with the Fifth Circuit Court of Appeals in Ryan LLC et.al. v. Federal Trade Commission, the case in which the plaintiffs are...more

Cozen O'Connor

Democratic AGs File Amicus Brief Supporting FTC’s Non-Compete Rule

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A coalition of 18 Democratic AGs filed an amicus brief with the U.S. Court of Appeals for the Eleventh Circuit in Properties of the Villages, Inc. v. the Federal Trade Commission ( 24-13102) supporting the FTC’s defense of...more

Stevens & Lee

FTC Asserts Its Rulemaking Authority in Opening Brief Defending Its Ban on Noncompetes

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On Nov. 5, the Federal Trade Commission (FTC) filed its opening brief in its pending appeal in Properties of the Villages, Inc. v. FTC,No. 24–13102 (M.D. Florida). As previously reported, on Aug. 14, Judge Timothy Corrigan...more

Kerr Russell

FTC’s Ban on Covenants Not to Compete Remains on Hold

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The legal arguments advanced in these court cases mainly concern whether the FTC has the statutory authority to enact such a ban. Shortly before the September 4, 2024 effective date of FTC’s ban on covenants not to compete,...more

Polsinelli

Stay Tuned… FTC Seeks to Breathe Life Back Into Non-Compete Ban

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This past week, the FTC appealed a Texas federal court’s August ruling that blocked nationwide enforcement of the non-compete ban. The non-compete ban will remain blocked during the pendency of the appeal process. However,...more

Fisher Phillips

Breaking Down the FTC Non-Compete Ban Appeals: Heading to a Circuit Split and SCOTUS Intervention?

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The Federal Trade Commission has appealed two federal trial court decisions – one in Texas and one in Florida – that prevented the agency from enforcing its near-total ban on non-compete agreements. The Texas appeal, filed on...more

Stevens & Lee

FTC Appeals Decision in the Ryan Case: Fate of the Noncompete Rule Now Rests in the Appeals Courts

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On Oct. 18, the Federal Trade Commission (FTC) expectedly filed a notice of appeal to the Fifth Circuit Court of Appeals in Ryan LLC et.al. v. Federal Trade Commission. As has been previously reported, Judge Ada M. Brown in...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Pennsylvania Company Drops Challenge to FTC Noncompete Ban After Injunction Denial

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A Pennsylvania company has dropped its challenge to the Federal Trade Commission’s (FTC) noncompete ban after a Pennsylvania federal judge denied the company’s bid to block the rule. The dismissal of the Pennsylvania lawsuit...more

Goodell, DeVries, Leech & Dann, LLP

FTC Final Rule on Noncompete Clauses: Pending Litigation

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There are several legal challenges to the Federal Trade Commission’s (FTC) ban on noncompete clauses in employment agreements. There have been multiple lawsuits in varying federal district courts that seek to delay or...more

K&L Gates LLP

Loper Bright's Potential Effect on Federal Labor and Employment Law: Possible Consequences for Agencies and Practitioners

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On 28 June 2024, the US Supreme Court in Loper Bright Enterprises v. Raimondo (Loper Bright) overturned the 40-year-old Chevron doctrine, which required courts to defer to federal agencies’ reasonable interpretations of...more

Jenner & Block

Non-Competition Agreements; FTC Rule Status

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As we previously reported, on April 23, 2024, the Federal Trade Commission (FTC) announced their final rule banning most “non-competition” agreements. The FTC determined non-competition agreements were an unfair method of...more

Ervin Cohen & Jessup LLP

FTC’s Nationwide Ban on Non-Compete Agreements Stopped by Federal Court Ruling

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The FTC’s effort to implement a nationwide ban on the use of most non-compete agreements has been stalled indefinitely following a recent court ruling by a district court judge in Texas....more

Cadwalader, Wickersham & Taft LLP

FTC’s Rule Banning Non-Compete Agreements Is “Set Aside” Nationwide in District Court Ruling, But Two District Courts Find FTC...

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The Federal Trade Commission’s (the FTC) rule prohibiting the entering into or enforcement of non-compete clauses between employers and employees (the Non-Compete Rule) made final in April 2024 and originally scheduled to go...more

Epstein Becker & Green

#WorkforceWednesday®: After the Block - What’s Next for Employers and Non-Competes? - Spilling Secrets Podcast - Employment Law...

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This week, on our Spilling Secrets podcast series, our panelists delve into the implications for employers following the recent blockage of the Federal Trade Commission’s (FTC’s) non-compete ban. On August 20, 2024, the U.S....more

Clark Hill PLC

The FTC Rule Banning Noncompetes Has Been Struck Down – For Now

Clark Hill PLC on

On Aug. 20, a new federal court decision from the Northern District of Texas in Ryan LLC v. Federal Trade Commission halted enactment of the Federal Trade Commission’s (“FTC”) Rule banning noncompete agreements throughout the...more

Patterson Belknap Webb & Tyler LLP

Court Blocks FTC Rule Banning Almost All Worker Non-Compete Deals

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A federal court has issued a nationwide injunction blocking enforcement of the Federal Trade Commission’s (“FTC”) new rule that would ban nearly all non-competition (“non-compete”) deals. The rule, issued on April 23, 2024...more

Pillsbury Winthrop Shaw Pittman LLP

District Court Ruling Bars Federal Trade Commission Non-Compete Rule for the Near Term

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With further proceedings anticipated, and in light of the numerous state law restrictions on non-competes, employers should continue to act with caution when presenting employees with non-compete agreements. On August 20,...more

Stokes Wagner

Federal Noncompete Ban Struck Down

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The District Court for the Northern District of Texas issued a decision striking down the Federal Trade Commission’s rule banning non-compete agreements, which was set to take effect on September 4, 2024....more

BCLP

Federal Court Strikes Down FTC’s Non-Compete Ban

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Employers can breathe a sigh of relief as a Texas federal judge set aside the Federal Trade Commission’s (FTC) impending ban on non-compete clauses.  The FTC published a final rule banning all non-compete clauses with...more

Rumberger | Kirk

Ramifications of Ryan: The Future of the FTC’s Final Rule Banning Non-Competes

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The Federal Trade Commission’s Final Rule banning non-competes will not take effect on September 4, 2024. On August 20, 2024, U.S. District Judge Ada Brown for the Northern District of Texas ruled on the merits of the...more

Flaster Greenberg PC

Texas Court Puts a Stop to FTC's Non-Compete Ban

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On August 20, 2024, a Texas Federal Court issued a nationwide bar on the enforcement of the Federal Trade Commission (“FTC”) rule banning nearly all non-compete agreements (the “Final Rule”), which, as we have previously...more

Foley & Lardner LLP

FTC’s Ban on Noncompete Agreements Is Blocked

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The Federal Trade Commission’s efforts to ban noncompete agreements suffered a serious blow when a federal judge in Texas issued a nationwide injunction blocking the ban’s enforcement. Implementation of the ban could disrupt...more

Perkins Coie

August Tip of the Month: Court Blocks FTC Rule Banning Employment-Related Noncompete Agreements

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On August 20, 2024, a Texas district court issued a decision blocking a Federal Trade Commission (FTC) Rule, which would have banned employment-related noncompete agreements....more

Tucker Arensberg, P.C.

The FTC’s Non-Compete Rule Has Been Struck Down and Will No Longer Take Effect on September 4, 2024.

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On August 20, 2024, the United States District Court for the Northern District of Texas, Dallas Division, set aside the Federal Trade Commission’s “Non-Compete Rule” (the “Rule”). ...more

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