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Federal Bans Texas Employer Liability Issues

Perkins Coie

Texas District Court Upends FTC Noncompete Rule

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In the case of Ryan LLC v. Chamber of Commerce of the United States of America, et al., Judge Ada Brown of the U.S. District Court for the Northern District of Texas issued an order with “nationwide effect” on August 20,...more

Skadden, Arps, Slate, Meagher & Flom LLP

FTC Noncompete Rule Is Set Aside, But Appeal Is Expected and States May Act

On August 20, 2024, in Ryan LLC v. Federal Trade Commission, a district court in the Northern District of Texas held “unlawful and set[] aside” the Federal Trade Commission’s (FTC) Non-Compete Rule, 16 C.F.R. § 910.1–.6. That...more

Steptoe & Johnson PLLC

Texas Federal Court Invalidates FTC’s Non-Compete Ban As Unconstitutional

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A federal judge in Texas has barred enforcement of the Federal Trade Commission’s (FTC’s) new regulations, which otherwise would have banned most non-compete agreements. Holding that the FTC lacked statutory authority to...more

Shutts & Bowen LLP

Breaking News: Federal Judge Blocks Nationwide Implementation of the FTC’s New Rule Banning Noncompete Agreements

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On August 20, 2024, U.S. District Judge Ada Brown in Texas issued a final order in the pending case, Ryan v. FTC, holding that the Federal Trade Commission (FTC) exceeded its authority in issuing a ban on noncompete clauses....more

Sheppard Mullin Richter & Hampton LLP

Final Word on Final Rule? Texas District Court Eviscerates FTC’s Non-Compete Ban

On July 3, 2024, Judge Ada Brown of the U.S. District Court for the Northern District of Texas entered a limited, preliminary injunction barring the Federal Trade Commission (“FTC”) from enforcing its controversial Final Rule...more

Brooks Pierce

Texas Court Issues Nationwide Ban on FTC’s Non-Compete Rule; Appeals Expected

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On August 20, 2024, a Texas federal court ruled that the FTC’s final rule banning most non-compete agreements (the “Non-Compete Rule”) cannot go into effect as scheduled. Many employers had been preparing to comply with the...more

Eversheds Sutherland (US) LLP

Failure to launch – Texas court grants nationwide permanent injunction, icing the FTC’s noncompete ban indefinitely

The Federal Trade Commission’s (FTC) nationwide ban on post-employment noncompetition agreements is no more following a Northern District of Texas judge’s ruling imposing a nationwide permanent injunction. Although a long and...more

Foley Hoag LLP

Federal Judge Blocks FTC’s Noncompete Rule Nationwide

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On August 20, 2024, Judge Brown of the Northern District of Texas blocked the FTC’s Final Rule banning noncompetes. The decision comes just over a month after Judge Brown’s preliminary injunction order, which stayed the rule...more

McDermott Will & Emery

Texas Court Issues Nationwide Injunction Striking Down the FTC Noncompete Ban

McDermott Will & Emery on

On August 20, 2024, the US District Court for the Northern District of Texas issued a nationwide injunction barring the Federal Trade Commission’s (FTC) Final Rule that bans all noncompete agreements. The court’s findings...more

Schwabe, Williamson & Wyatt PC

Court Blocks FTC’s Nationwide Ban on Non-Compete Agreements

On August 20, the U.S. District Court for the Northern District of Texas in Ryan, LLC et al. v. Federal Trade Commission, granted the plaintiffs’ motions for summary judgment and found the Federal Trade Commission’s ban on...more

Butler Snow LLP

Texas Court Enjoins FTC From Enforcing Noncompete Rule

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As expected, a Texas federal court issued a ruling on August 20, 2024, declaring that the Federal Trade Commission’s (“FTC’s”) new rule purporting to ban nearly all noncompete agreements shall not “take effect on its...more

DarrowEverett LLP

What Texas Court’s Decision on Non-Competes Means for Businesses

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The Federal Trade Commission’s (FTC) ambitious attempt to implement a nationwide ban on non-compete agreements (with limited exceptions) has hit a significant legal roadblock. On August 20, 2024, U.S. District Judge Ada Brown...more

Brooks Pierce

Pennsylvania Court Refuses to Halt Enforcement of FTC’s Final Rule, Diverging From Recent Texas Court Ruling

Brooks Pierce on

On July 23, 2024 a Federal District Court in Pennsylvania denied an employer plaintiff’s efforts to temporarily halt implementation and enforcement of the FTC’s final rule banning “non-compete clauses” (the “Final Rule”). The...more

Sullivan & Worcester

Uncertainty Heightened as Two District Courts Reach Conflicting Conclusions on FTC Non-Compete Ban’s Enforceability

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Just weeks after a federal court in Texas held that the Federal Trade Commission (“FTC”) exceeded its authority in issuing a rule banning nearly all non-compete agreement (and, therefore, the plaintiffs challenging that rule...more

Sullivan & Worcester

Companies Turn to Trade Secret, Patent, Copyright to Mitigate Risks from FTC Non-Compete Ban

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On April 23, 2024, the Federal Trade Commission narrowly approved a rule banning most non-competition agreements. The rule, set to go into effect on September 4, 2024, prohibits employers from including non-compete provisions...more

A&O Shearman

FTC's non-compete rule in limbo following Texas District Court’s preliminary injunction

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On July 3, 2024, the United States District Court for the Northern District of Texas (the “Court”) in Ryan LLC v. Federal Trade Commission (“Ryan”) preliminarily enjoined the U.S. Federal Trade Commission (“FTC”) from...more

Moore & Van Allen PLLC

Employers in Limbo After Ruling on FTC’s Non-Compete Ban

Moore & Van Allen PLLC on

Recent headlines implying a general a stay of the Federal Trade Commission’s non-compete rule are misleading. Here’s what employers need to know.  On April 23, 2024, the Federal Trade Commission approved a rule banning...more

McDermott Will & Emery

Texas Court Postpones FTC Noncompete Ban

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On July 3, 2024, the US District Court for the Northern District of Texas stayed the September 4, 2024, implementation date (the effective date) of the Federal Trade Commission’s (FTC) Final Rule that bans all new noncompete...more

Perkins Coie

Employers Left in Limbo by FTC Noncompete Decision

Perkins Coie on

In Ryan v. Federal Trade Commission, Federal District Court Judge Ada Brown released a much-anticipated preliminary injunction decision against the Federal Trade Commission (FTC) regarding its pending “Non-Compete Ban.” Case...more

ArentFox Schiff

FTC Rule Addressing Noncompete Covenants: Impact of Senior Executive Exception on Health Care Entities

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The Federal Trade Commission’s (FTC) Final Rule banning noncompete covenants for workers is likely to present particular challenges for employers in the health care industry. Because of the structural and organizational...more

Foley Hoag LLP

Federal Court Stays FTC’s Noncompete Ban, But Only for Named Plaintiffs

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On July 3, 2024, Judge Ada Brown in the Northern District of Texas issued her highly anticipated decision in Ryan LLC v. FTC addressing plaintiff Ryan LLC’s motion for a preliminary injunction seeking to stay enforcement of...more

Dechert LLP

Federal Court Preliminarily Enjoins FTC Ban on Employee Non-Compete Agreements, But Not for the Vast Majority of Employers

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In April 2024, the Federal Trade Commission (“FTC” or the “Commission”) announced a Final Rule that would prohibit nearly all existing and future non-compete agreements between employers and workers, subject to specified...more

Bradley Arant Boult Cummings LLP

FTC’s Non-Compete Rule Enjoined for Now – But Only as to the Plaintiffs

On Wednesday, July 3, a Texas federal court enjoined the Federal Trade Commission’s (FTC) rule banning most noncompetes (the Noncompete Rule) and has stayed the implementation of the Noncompete Rule, but only as to the...more

Akin Gump Strauss Hauer & Feld LLP

FTC Non-Compete Ban Preliminarily Enjoined by Texas District Court

On July 3, 2024, the U.S. District Court for the Northern District of Texas enjoined the Federal Trade Commission (FTC) from enforcing and implementing its rule banning non-competes and stayed the September 4 effective date...more

Holland & Hart LLP

FTC's Noncompete Ban On Hold…For Parties Involved in Lawsuit

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On July 3, 2024, a federal judge from the Northern District of Texas barred the Federal Trade Commission (“FTC”) from enforcing its Rule banning noncompete agreements and paused the Rule’s effective date of September 4, 2024....more

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