News & Analysis as of

Federal Bans Restrictive Covenants Unfair Competition

Pillsbury Winthrop Shaw Pittman LLP

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

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

Stokes Wagner on

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

BCLP on

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

Tucker Arensberg, P.C.

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

Tucker Arensberg, P.C. on

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

Tarter Krinsky & Drogin LLP

FTC Non-Compete Ban Set Aside

Last week, on the eve of the effective date of the FTC's ban on non-compete agreements, a Texas federal district court found that the agency had exceeded its authority in enacting the ban. The Court also explained that its...more

Jackson Lewis P.C.

Battle Over/War Isn’t: Employer Considerations Now That FTC Non-Compete Ban Is Set Aside

Jackson Lewis P.C. on

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

Venable LLP

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

Venable LLP on

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

Nutter McClennen & Fish LLP

Federal Court Blocks FTC's Non-Compete Ban

On August 20, a federal judge in the Northern District of Texas ruled that the Federal Trade Commission (“FTC”) cannot enforce its rule banning the use of non-compete agreements for most workers. Significantly, the court...more

Greenbaum, Rowe, Smith & Davis LLP

Federal District Court in Texas Blocks FTC Non-Compete Final Rule

On August 20, 2024, the United States District Court for the Northern District of Texas invalidated the Federal Trade Commission’s (FTC) ban on most non-compete provisions. As we have previously advised, the FTC’s final rule...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

Kaufman & Canoles on

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

McCarter & English, LLP

The FTC’s Non-Compete Rule “Set Aside:” What Next for Employers and Employees?

After a series of preliminary, narrowly decided, and conflicting court decisions concerning requests for preliminary injunctions (see August 20, 2024 Alert), a federal district court in Texas has now entirely set aside the...more

Levenfeld Pearlstein, LLC

Texas Federal Court Strikes Down FTC’s Non-Compete Ban

On Tuesday, August 20, U.S. District Judge Ada Brown granted summary judgment, in favor of blocking the Federal Trade Commission’s (“FTC”) rule banning non-competes (the “Rule”). The Rule, which had been scheduled to go into...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

Venable LLP on

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

Laner Muchin, Ltd.

Employers Need to Consider the Impact of the Pending Ban on Non-Compete Clauses

Laner Muchin, Ltd. on

On April 23, 2024, the Federal Trade Commission (FTC) approved a final rule banning nearly all post-employment non-compete clauses for workers nationwide (Rule). The Rule is currently set to take effect September 4, 2024....more

Womble Bond Dickinson

Federal Court Strikes Down FTC's Noncompete Clause Rule

Womble Bond Dickinson on

As an update to our April 25, 2024 Client Alert, “FTC Issues New Rule—But Not the Final Chapter—on Non-Competes: What Employers Need to Know,” a federal court in Dallas, Texas has blocked the Federal Trade Commission’s Rule...more

Tucker Arensberg, P.C.

Texas Judge Stops FTC Non-Compete Ban From Going Into Effect

Tucker Arensberg, P.C. on

In a continuation of the saga surrounding the FTC’s ban on non-compete agreements for for-profit businesses, on August 20, 2024, a ruling from the United States District Court for the Northern District of Texas struck down...more

Smith Anderson

FTC’s Non-Compete Rule Struck Down Nationwide

Smith Anderson on

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

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

Bricker Graydon LLP on

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

Miles & Stockbridge P.C.

Texas Court Strikes Down FTC Noncompete Rule as Unlawful

The U.S. District Court for the Northern District of Texas issued its decision Tuesday that the business world had been awaiting with bated breath, striking down the Federal Trade Commission's (FTC) final rule making unlawful...more

Obermayer Rebmann Maxwell & Hippel LLP

Saved by the Bell: Federal Court Blocks the FTC’s Ban on Non-Compete Agreements

As we previously reported, the Federal Trade Commission (FTC) finalized a rule in April that would prohibit non-competes in most contexts, and was slated to go into effect on September 4, 2024. Businesses and business groups...more

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