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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
In this special 150th podcast episode, Michael Schmidt is joined by his Cozen O'Connor colleagues David Barron and Jim Gale to discuss what is left of the FTC noncompete rule, if anything, and what employers should be doing...more
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
The Federal Trade Commission recently posted a notice on its website acknowledging that the federal court injunction issued in Texas will prevent implementation for now of its final regulations restricting use of...more
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
If September 4, 2024, was circled on your calendar as the start of the federal government’s anti-restrictive covenant push into private employment contracts, hopefully it was in pencil. Last week, Judge Ada E. Brown of the...more
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
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
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
On April 23, the FTC promulgated its final rule banning noncompetes nationwide. Originally published in Law360 - May 23, 2024....more
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
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
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
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
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
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
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
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
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
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
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
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
In an eagerly awaited decision, United States District Judge for the Northern District of Texas Ada Brown issued yesterday a nationwide injunction striking down the Federal Trade Commission’s Noncompete Clause Rule,...more
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
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