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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
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
If September 4, 2024, was circled on your calendar as the start of the federal government’s anti-restrictive covenant push into private employment contracts, hopefully it was in pencil. Last week, Judge Ada E. Brown of the...more
A Texas court has set aside the Federal Trade Commission’s (FTC’s) Final Rule banning almost all non-compete clauses days before it was set to take effect on Sept. 4. Ryan LLC v. FTC, No. 3:24-CV-00986-E, 2024 U.S. Dist....more
As we explained in a previous client alert, the Federal Trade Commission (“FTC”) published a proposed final rule that would ban nearly all worker non-competes. The rule was scheduled to go into effect on September 4, 2024....more
In a ruling issued Tuesday, August 20, 2024, the U.S. District Court for the Northern District of Texas struck down the Federal Trade Commission’s (“FTC”) Noncompete Rule banning nearly all noncompete agreements, which had...more
As every employer in the U.S. is likely aware, the Federal Trade Commission’s (“FTC”) near-universal ban on non-competes nationwide, which the FTC voted to implement via regulatory rulemaking on April 23 of this year, has...more
The Federal Trade Commission's Non-Compete Clause Rule proposed in January 2023 that we have previously written about becomes effective September 4, 2024, and invalidates most noncompetition agreements on or after the Rule's...more
A federal court in Wisconsin recently denied a haircare product dealer’s motion for summary judgment on its Wisconsin Fair Dealership Law (WFDL) and breach of contract claims against the dealer’s national distributor. Brava...more
Winstead’s Labor & Employment team previously reported that the Federal Trade Commission (“FTC”) issued its final rule largely banning noncompetes nationwide (“Rule”), spurring races to the courthouse in the federal district...more
The hot mess known as the FTC Rule to Ban Non-Competes (“Rule”) continues to get hotter and messier as two Federal District Courts issue conflicting opinions. This conflict between the Federal Courts will not be resolved...more
With the effective date of the FTC’s ban on non-competes looming, a federal Judge in Pennsylvania declines to issue a preliminary injunction. A federal judge in Pennsylvania recently declined to enter an injunction...more
As we previously reported, on April 23, 2024, the Federal Trade Commission (FTC) adopted a final rule banning post-employment noncompete agreements nationwide, with limited exceptions related to the sale of a business and any...more
On July 23, 2024, a federal judge from the Eastern District of Pennsylvania declined to issue a preliminary injunction that would block the Federal Trade Commission’s (“FTC”) rule banning most noncompete agreements, current...more
Since it was first published in April, the fate of the Federal Trade Commission’s (FTC) final non-compete rule has been, to put it mildly, less than certain. Now, about a month before the rule is scheduled to take effect, the...more
On April 23, 2024, the Federal Trade Commission finalized its rule enforcing a noncompete ban for a vast majority of workers. The noncompete ban is set to take effect on September 4, 2024. With limited exceptions, the rule...more
On July 23, 2024, U.S. District Court Judge Kelley Brisbon Hodge (E.D. Pa) denied the request of ATS Tree Services, LLC (ATS).[1], a tree care company operating in Eastern Pennsylvania, for issuance of a stay of the Sept. 4,...more
On July 23, 2024, the U.S. District Court for the Eastern District of Pennsylvania issued a decision greenlighting the Federal Trade Commission's (FTC) final rule banning most non-compete agreements in the United States and...more
As discussed in our previous article, the Federal Trade Commission’s (“FTC”) newly enacted Non-Compete Clause Rule (“Rule”) is set to go into effect on September 4, 2024, by its own terms. The Rule would virtually ban all...more
Earlier this month, we reported on a preliminary injunction granted to the plaintiffs in a lawsuit filed in federal district court in Texas, seeking to block the Federal Trade Commission’s regulations voiding most employment...more
July was a busy month for courts analyzing the FTC’s rulemaking authority. In April, the FTC published its final rule banning most employment-based noncompetition agreements (the Noncompete Rule). Immediately after the FTC...more
On July 23, 2024, the District Court for the Eastern District of Pennsylvania denied a request for a preliminary injunction to stay the FTC's Non-Compete Clause Rule (the "Rule"). Set to take effect on September 4, 2024, the...more
As we explained in a previous client alert, the Federal Trade Commission ("FTC") has published a proposed final rule that would ban nearly all worker non-competes. The rule was published on May 7, 2024, and will go into...more
Last week, we received the first indication of a Texas federal court’s position on a lawsuit filed by the U.S. Chamber of Commerce challenging the validity of the Federal Trade Commission’s new regulations banning most...more
Almost immediately after the Federal Trade Commission (FTC) issued its rule essentially banning non-compete agreements nationwide for all workers, the lawsuits started flying. One of the first cases filed was by Ryan, LLC...more