FTC Rule Banning Non-Competes is Set Aside

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On August 20, 2024, the federal U.S. District Court for the Northern District of Texas set aside the FTC’s rule (Rule) banning non-competes. The Rule was set to take effect on September 4, 2024. The court’s decision is subject to appeal, but any appeal is unlikely to occur before September 4. This means that state law will continue to govern the enforceability of non-competes.

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. Attorney Advertising.

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