News & Analysis as of

Arbitrary and Capricious Unfair Competition Restrictive Covenants

Balch & Bingham LLP

Non-Compete Contracts: Legally Undead

Balch & Bingham LLP on

Contracts restraining competition by former employees and contractors have always faced enforcement headwinds, differing state-by-state in their strength and direction. California is most hostile; there, a statute purports to...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

Venable LLP

FTC Rule Largely Banning Non-Competes Put on Ice by Federal Judge

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This past April, the Federal Trade Commission (FTC) proposed a rule (Rule) that amounted to a near total nationwide ban on employers’ use of non-compete agreements. Since its announcement, employers have actively attempted to...more

Parker Poe Adams & Bernstein LLP

Federal Court Strikes Down FTC Noncompete Rule

For those of you who have been following along with the Federal Trade Commission’s (FTC) looming noncompete ban and the various challenges it has presented, there comes good news for employers from a Texas federal court....more

Kaufman & Canoles

FTC Noncompete Will Not Go into Effect on September 4

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A Texas federal court in Ryan LLC v. FTC issued an opinion and order on August 20 setting aside the FTC Noncompete Ban (the “FTC Rule”) on a nationwide basis. Specifically, the Court found the FTC Rule to be “arbitrary and...more

Constangy, Brooks, Smith & Prophete, LLP

The FTC noncompete ban is dead. Here are five steps employers should take now.

You no doubt have heard that on August 20, a federal judge in the Northern District of Texas set aside the Rule issued by the Federal Trade Commission that sought to ban virtually all noncompetition agreements as unfair...more

Holland & Knight LLP

District Court in Texas Sets Aside FTC Non-Compete Rule

Holland & Knight LLP on

In Ryan LLC v. Federal Trade Commission, the U.S. District Court for the Northern District of Texas on Aug. 20, 2024, set aside the Federal Trade Commission's (FTC) Non-Compete Rule, as promulgated in 16 C.F.R. § 910.1-6...more

Venable LLP

Court Rules FTC’s Non-Compete Rule Is Unenforceable Nationwide

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The Federal Trade Commission’s (FTC) rulemaking crusade suffered a serious blow this week, when Judge Ada Brown of the Northern District of Texas set aside the agency’s Final Rule that made most employment-related non-compete...more

Saiber LLC

U.S. District Judge Strikes Down FTC’s Rule to Ban Non-Compete Agreements

Saiber LLC on

On April 23, the FTC issued a final Rule banning non-compete agreements between employers and workers. The FTC Rule was scheduled to take effect on September 4, and plaintiffs in at least three litigations challenged the...more

Goodwin

Texas Court Finds FTC Noncompete Ban Unlawful with Nationwide Effect

Goodwin on

On Tuesday, August 20, 2024, a federal judge in Texas issued an order finding unlawful – and prohibiting the enforcement of – a rule issued by the Federal Trade Commission (the “FTC”) that prohibited the use of most...more

Bricker Graydon LLP

FTC’s Non-Compete Ban is Dead - RIP

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In breaking news that will surprise … absolutely no one, a federal judge ruled yesterday that the FTC overstepped its authority when it issued a sweeping national ban on non-compete agreements. The decision came out of Texas...more

Morrison & Foerster LLP

Good News for Employers: Texas Court Blocks FTC’s Nationwide Non-Compete Ban

On August 20, 2024, a judge in the U.S. District Court for the Northern District of Texas granted a nationwide injunction against the Federal Trade Commission’s (“FTC’s”) rule banning non-competes with employees (the “Rule”)....more

Cole Schotz

Texas District Court Strikes Down the FTC’s Non-Compete Ban on a Nationwide Basis

Cole Schotz on

On August 20, 2024, in Ryan LLC v. Federal Trade Commission, Judge Ada Brown of the U.S. District Court for the Northern District of Texas barred the Federal Trade Commission’s (“FTC”) Non-Compete Rule (the “Rule”) from...more

Tonkon Torp LLP

Texas Court Strikes Down FTC Rule Banning Noncompetition Agreements Weeks Before Enforcement

Tonkon Torp LLP on

On Tuesday, August 20, 2024, the U.S. District Court for the Northern District of Texas struck down the Federal Trade Commission’s (FTC’s) final rule banning most noncompetition agreements. The FTC was set to start enforcing...more

Houston Harbaugh, P.C.

Texas Federal Court Strikes Down FTC Ban on Non - Competes in Ryan v. FTC

Houston Harbaugh, P.C. on

The long awaited collision between the Federal Trade Commission (FTC) and the varied political and legal opinions on the legality of Employment Non-Compete Agreements (Non-Competes) is now moving up the ladder of...more

Stevens & Lee

With Effective Date Fast Approaching, the FTC’s Noncompete Ban Is Set Aside

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In a decision on Aug. 20 impacting employers and employees nationwide, the U.S. District Court for the Northern District of Texas granted Plaintiff Ryan LLC’s motion for summary judgment, set aside the FTC’s Noncompete Rule...more

Seyfarth Shaw LLP

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

Seyfarth Shaw LLP on

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

Bowditch & Dewey

Federal District Court Strikes Down FTC Non-Compete Ban

Bowditch & Dewey on

In April of 2024, Bowditch alerted clients that the Federal Trade Commission (“FTC”) finalized “The Non-Compete Clause Rule” (the “Rule”), which would ban most employers from using post-employment non-compete agreements in...more

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

Federal District Court Blocks FTC Noncompete Rule from Taking Effect

On August 20, 2024, the U.S. District Court for the Northern District of Texas held unlawful and set aside the Federal Trade Commission’s (FTC) final rule prohibiting non-competition agreements with workers. The court entered...more

Fisher Phillips

Breaking News: FTC’s Non-Compete Ban Struck Down For All Employers Nationwide

Fisher Phillips on

A Texas federal court just struck down the FTC’s proposed ban on non-competition agreements on a nationwide basis mere weeks before it was set to take effect, meaning employers across the country can breathe a sigh of relief...more

Porter Hedges LLP

FTC’s Final Rule Banning Non-Competes: Here’s Why You Shouldn’t Panic…Yet

Porter Hedges LLP on

The Federal Trade Commission (“FTC”) made waves on April 23, 2024, when it issued a final rule that (1) voids existing non-compete agreements, with two exceptions; and (2) prohibits employers from entering into new...more

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