News & Analysis as of

Injunctive Relief Restrictive Covenants Employment Contract

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

Baker Botts L.L.P.

Court Strikes Down FTC’s Non-Compete Ban

Baker Botts L.L.P. on

On July 10, 2024, we sent you an update informing you that Judge Ada Brown of the United States District Court for the Northern District of Texas had entered a preliminary injunction blocking the Federal Trade Commission...more

Littler

Texas Court Sets Aside the FTC’s Non-Compete Rule with Nationwide Effect

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Employers that rely on non-compete agreements to protect their trade secrets and other legitimate business interests got some welcome news on August 20. The Federal Trade Commission’s (FTC) final non-compete rule, which seeks...more

Stinson LLP

FTC Ban on Worker Non-Competes Halted by Federal Court

Stinson LLP on

On August 20, 2024, a Texas federal court judge issued an order halting the Federal Trade Commission's (FTC) non-compete rule, preventing it from taking effect on September 4, 2024. The order, issued by Judge Ada Brown, held...more

Polsinelli

Texas Federal Judge Blocks FTC Non-Compete Ban

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This week, Judge Ada E. Brown of the U.S. District Court for the Northern District of Texas in Ryan v. The Federal Trade Commission upheld a challenge by business groups to the FTC’s non-compete ban. In addition to confirming...more

Lowndes

FTC Non-Compete Ban is Banned

Lowndes on

On August 20, 2024, a federal court in Texas permanently blocked the Federal Trade Commission's (FTC) final rule banning most non-competes. U.S. District Judge Ada Brown granted summary judgment in favor of the plaintiffs in...more

Robinson+Cole Health Law Diagnosis

A Federal Court in Texas Strikes Down the FTC’s Nationwide Non-Compete Ban

On August 20, 2024, the United States District Court for the Northern District of Texas (Dallas Division) struck down the Federal Trade Commission’s (FTC) non-compete rule, 16 CFR § 910.1-6, that was set to take effect...more

Stradling Yocca Carlson & Rauth

Texas Court Holds ‘Em Off: FTC’s Impending Ban On Non-Competes Likely To Fold

On Tuesday, August 20, a Texas federal judge set aside the FTC’s “Non-Compete Rule” (the “Rule”).  This decision comes just two weeks before the FTC’s nationwide ban on non-competes was set to take effect.  The Court stated...more

Hinckley Allen

Texas Court Invalidates FTC Noncompete Ban: Key Takeaways

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On August 20, a federal court in Texas issued an order invalidating the Federal Trade Commission’s (FTC) ban on noncompete agreements (Final Rule), which had been set to take effect on September 4, 2024. The decision, issued...more

Vinson & Elkins LLP

“No More Non-Competes,” Part Four: Texas Federal District Court Blocks FTC Noncompete Rule on Nationwide Basis

Vinson & Elkins LLP on

On August 20, 2024, the U.S. District Court for the Northern District of Texas entered a final judgment (“Order”) setting aside, on a nationwide basis, the Federal Trade Commission (“FTC”) final rule (“Rule”) prohibiting...more

CDF Labor Law LLP

Court Issues Nationwide Injunction Against FTC’s Noncompete Ban

CDF Labor Law LLP on

As of yesterday afternoon, employers across the country that utilize noncompete agreements may breathe a sigh of relief, as Judge Ada Brown beat her self-imposed deadline of August 30, 2024 and ordered an end to any...more

Bodman

FTC Non-Compete Ban Blocked ˗ For Now

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In a widely anticipated ruling, Judge Ada E. Brown of the United States District Court for the Northern District of Texas sided with the U.S. Chamber of Commerce and a Texas-based tax firm to block the FTC’s Final Rule...more

FordHarrison

If The FTC Ban On Non-Competes Is Not Enjoined, What Is Your Company's "Plan B"?

FordHarrison on

The Federal Trade Commission (FTC) issued an extremely broad Final Rule banning most non-competes. As expected, there have been multiple court challenges to the Final Rule, but, to date, no court has issued a nationwide...more

Quarles & Brady LLP

Supply Chain Survival Series: Remedies for Breach of Contract (Article #14)

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We have previously discussed the obligations a non-breaching party has to mitigate its own damages in the event of a contract breach. Assuming a party has mitigated its damages, this article discusses the potential remedies...more

Benesch

Texas Federal Court Enjoins, and Signals Readiness to Invalidate, the FTC’s Non-Compete Ban

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After the Federal Trade Commission (“FTC”) voted on April 23 to enact its nationwide ban on non-competes, employers and business organizations did not have to wait long—not even a day—before challengers began opposing the...more

Cole Schotz

District Court Judge Issues Preliminary Injunction Blocking Enforcement of FTC’s Non-Compete Ban

Cole Schotz on

On July 3, 2024, in Ryan LLC v. Federal Trade Commission, Judge Ada Brown of the U.S. District Court for the Northern District of Texas issued a preliminary injunction against the enforcement of the Federal Trade Commission’s...more

CDF Labor Law LLP

Court Orders Limited Injunction Against FTC Enforcement of Non-Compete Regulations

CDF Labor Law LLP on

Judge Brown of the United States District Court for the Northern District of Texas issued a much anticipated Preliminary Injunction to stay the September 4, 2024 effective date of the FTC’s announced ban on non-compete...more

Polsinelli

Lawsuits Filed Challenging the FTC’s Final Rule Banning Non-Competes

Polsinelli on

To date, three lawsuits have been filed challenging the legality of the FTC’s Final Rule banning non-competes. The initial two cases were filed in Texas federal court, which is widely viewed as a more hospitable forum for...more

White & Case LLP

Notice May Be Required for California Employees Subject to Non-Competes

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California passed new laws reiterating its prohibition on employment-related non-competition obligations. Assembly Bill 1076, effective January 1, 2024, provides that it is unlawful to include noncompete clauses in employment...more

Parker Poe Adams & Bernstein LLP

North Carolina Court of Appeals Limits Grounds for Review of Noncompete Injunction Denial

When litigating employment non-competition covenants, issuance by the court of a preliminary injunction may be more important than the ultimate outcome of the litigation. Depending on the circumstances, the injunction can...more

Proskauer - Law and the Workplace

N.Y. State Senate Passes Ban on Non-Competes

On June 7, 2023, the New York State Senate passed Bill No. S03100 (the “Bill”), which would impose a blanket ban on employee non-competition agreements in New York. The Bill defines a “non-compete agreement” as: any...more

Troutman Pepper

Noncompete Agreements and The Great Resignation

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“The Great Resignation” is upon us. For months, pundits have predicted that millions would leave their jobs as the pandemic subsides, and those predictions have proven prescient. According to The Wall Street Journal, the...more

Jackson Lewis P.C.

Illinois Bill To Further Limit Use of Restrictive Covenants With Employees Headed To Governor’s Desk

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The Illinois General Assembly passed a major bill on May 31, 2021, that further limits and clarifies the circumstances in which restrictive covenants can be enforced against Illinois employees. Governor J. B. Pritzker is...more

Seyfarth Shaw LLP

Fifth Circuit Holds that Reformation of Texas Non-Competes Is Authorized, and Perhaps Required, at Preliminary Injunction Stage

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On August 7, 2020, the Fifth Circuit addressed an issue presently undecided by the Texas Supreme Court; namely, whether reformation of an overbroad non-compete restriction is appropriate, and perhaps even required, at the...more

Farrell Fritz, P.C.

Restrictive Covenants: The Importance of Understanding Their Contractual Limits

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If supermodel Tyra Banks has taught us anything about the modeling industry, it’s that the competition is fierce. Unfortunately, one Manhattan-based modeling agency and former agent aren’t learning this lesson on the...more

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