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 its Final Rule banning non-compete clauses in employment contracts.
  • This case is one of several legal challenges to the FTC’s non-compete rule. Previously, the U.S. District Court for the Middle District of Florida issued a preliminary injunction preventing the FTC from enforcing the rule, citing a substantial likelihood that the plaintiff would prevail on its argument that the rule exceeds the FTC’s statutory authority.
  • In the amicus brief, the AGs urge the Eleventh Circuit to vacate the preliminary injunction. They highlighted the importance of the FTC’s rule, emphasizing that state-level variations in non-compete restrictions create a patchwork of laws that complicates enforcement in multistate labor markets. The AGs also contended that a uniform federal prohibition on non-compete clauses would foster competition and protect workers in critical sectors, such as healthcare.
  • We have previously reported on another legal challenge to the FTC’s Final Rule, Ryan LLC v. FTC(No. 3:24-CV-00986-E), in which a federal judge for the Northern District of Texas struck down the Rule as exceeding the FTC’s statutory authority.
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