News & Analysis as of

Final Rules Preliminary Injunctions Employer Liability Issues

Seyfarth Shaw LLP

Noncompete Agreements – Employer Options and Strategies to Reduce Risks

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Seyfarth Synopsis: The federal district court for the Northern District of Texas has issued an order in the Ryan case staying the effective date on a nationwide basis the Federal Trade Commission (FTC) Rules banning...more

Jenner & Block

Non-Competition Agreements; FTC Rule Status

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As we previously reported, on April 23, 2024, the Federal Trade Commission (FTC) announced their final rule banning most “non-competition” agreements. The FTC determined non-competition agreements were an unfair method of...more

Seyfarth Shaw LLP

The Saga’s Not Over – FTC Appeals Florida Court’s Stay of Non-Compete Rule

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Just over a month ago, employers throughout the United States breathed a sigh of relief after Judge Ada Brown in the Northern District of Texas issued a summary judgment ruling in the Ryan v. FTC litigation setting aside the...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

Quarles & Brady LLP

Texas Federal Judge Strikes Down FTC Non-Compete Ban

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Judge Ada Brown of the U.S. District Court for the Northern District of Texas on Tuesday struck down the Federal Trade Commission’s (FTC) pending ban on non-compete covenants, concluding that the issuance of the FTC’s Rule...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

Ballard Spahr LLP

Texas Federal Judge Strikes Down FTC Non-Compete Ban

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On August 20, 2024, Judge Ada Brown of the U.S. District Court for the Northern District of Texas vacated the Federal Trade Commission’s (FTC) final Rule that the FTC enacted to ban non-compete agreements. Judge Brown held...more

Troutman Pepper

Texas Court Issues National Injunction Barring Enforcement of the FTC’s Noncompete Ban

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In a complete victory for plaintiffs, a Texas court permanently enjoined the Federal Trade Commission’s (FTC) rule banning nearly all employee noncompetes. In the absence of the court’s decision, the rule had been scheduled...more

Moore & Van Allen PLLC

FTC’s Non-Compete Ban Blocked

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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

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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

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

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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

A&O Shearman

District Courts Split On Federal Trade Commission’s Non-Compete Clause Rule

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On July 23, 2024, Judge Kelley Brisbon Hodge of the United States District Court for the Eastern District of Pennsylvania denied plaintiff’s motion for a preliminary injunction seeking to enjoin the Federal Trade Commission...more

Foley Hoag LLP

UPDATE: Federal Court in PA Denies Preliminary Injunction for FTC’s Noncompete Ban

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In our recent alert, we noted that while a Texas federal court’s decision in Ryan LLC v. FTC to preliminarily enjoin the FTC’s noncompete rule applied only to the parties in the case, there was still potential for a broader...more

Brooks Pierce

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

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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

Ballard Spahr LLP

Texas District Court Preliminarily Enjoins FTC’s Non-Compete Ban for Named Plaintiffs

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As we previously reported, here, the Federal Trade Commission (FTC) issued a Final Rule on April 23, 2024 that would prevent most employers from enforcing non-compete agreements against workers, effective September 4, 2024...more

Smith Anderson

The Future of the FTC’s Non-Compete Ban Remains Uncertain - Consider Making Initial Preparations for Compliance

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As we explained in a previous client alert, the Federal Trade Commission ("FTC") has published a proposed final rule that would ban nearly all worker non-competes. The rule was published on May 7, 2024, and will go into...more

Bricker Graydon LLP

Non-Competes Banned? Not in the Heart of Texas!

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Almost immediately after the Federal Trade Commission (FTC) issued its rule essentially banning non-compete agreements nationwide for all workers, the lawsuits started flying. One of the first cases filed was by Ryan, LLC...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

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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

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