News & Analysis as of

Final Rules Arbitrary and Capricious Federal Trade Commission (FTC)

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

Farrell Fritz, P.C.

Court Strikes Down FTC’s Non-Compete Ban

Farrell Fritz, P.C. on

On Tuesday, August 20, 2024, the United States District Court in Texas found the FTC rule banning non-compete agreements to be “arbitrary and capricious.”...more

Buckingham, Doolittle & Burroughs, LLC

Federal Judge Blocks FTC Non-Compete Ban

The wait is over. On August 20, 2024, the United States District Court for the Northern District of Texas blocked the Federal Trade Commission’s (FTC) proposed ban on non-compete agreements...more

Weintraub Tobin

FTC Rule Ruled Unenforceable Nationwide

Weintraub Tobin on

The Federal Trade Commission issued a rule that would act as a comprehensive ban on non-compete agreements. The ban would have taken effect next month, and would have invalidated non-compete provisions in millions of existing...more

Sterne, Kessler, Goldstein & Fox P.L.L.C.

Update: FTC’s Ban on Non-Compete Agreements Set Aside

On May 7, 2024, the Federal Trade Commission (FTC) issued a Final Rule that renders invalid non-compete clauses in standard employment agreements. 16 C.F.R. § 910. On August 20, 2024, the United States District Court for the...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

Perkins Coie

Texas District Court Upends FTC Noncompete Rule

Perkins Coie on

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

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

Steptoe & Johnson PLLC

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

Steptoe & Johnson PLLC on

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

Foster Garvey PC

Federal Judge Blocks FTC's Nationwide Ban on Noncompete Agreements

Foster Garvey PC on

As we previously reported, the Federal Trade Commission’s (FTC) final rule banning noncompete agreements was set to take effect on September 4, 2024. This rule would have prohibited nearly all agreements that prevent workers...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

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

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

Moore & Van Allen PLLC

FTC’s Non-Compete Ban Blocked

Moore & Van Allen PLLC on

Bottom line: As of Tuesday night, the FTC’s non-compete rule has been set aside, cannot be enforced, and will not become effective on September 4, 2024. As an update to our prior alert regarding the Federal Trade...more

Shutts & Bowen LLP

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

Shutts & Bowen LLP on

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

Brooks Pierce on

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

Foley Hoag LLP on

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

Keating Muething & Klekamp PLL

FTC's Non-Compete Rule Struck Down

After a summer of speculation, businesses and individuals across the country were provided some clarity as the Federal Trade Commission’s (FTC) rule invalidating millions of non-compete agreements was struck down by a federal...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

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