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The Federal Trade Commission (FTC) is appealing a Texas federal court ruling that struck down the FTC’s noncompete ban nationally, teeing the case up to be heard by the U.S. Court of Appeals for the Fifth Circuit....more
A Pennsylvania company has dropped its challenge to the Federal Trade Commission’s (FTC) noncompete ban after a Pennsylvania federal judge denied the company’s bid to block the rule. The dismissal of the Pennsylvania lawsuit...more
On October 4, 2024, Plaintiff ATS Tree Services, LLC (“ATS”) voluntarily dismissed its claims against the FTC challenging the agency’s Non-Compete Rule. See ATS Tree Services, LLC v. Fed. Trade Comm’n, et al., No....more
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
On September 26, 2024, a Boston-based federal appeals court refused to extend California’s sweeping noncompete ban to agreements that were signed outside the state and governed by another state’s law....more
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
On Aug. 20, a new federal court decision from the Northern District of Texas in Ryan LLC v. Federal Trade Commission halted enactment of the Federal Trade Commission’s (“FTC”) Rule banning noncompete agreements throughout the...more
A federal court in Michigan has granted a franchisor’s motion for preliminary injunction against former franchisees for violating the franchise agreements’ post-termination noncompete provisions. 1-800 Water Damage Int’l LLC...more
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
The Federal Trade Commission’s (FTC) Non-Compete Rule, which was scheduled to become effective on September 4, 2024, was set aside last month by US District Judge Ada Brown of the Northern District of Texas in Ryan LLC v....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
The Federal Trade Commission’s Final Rule banning non-competes will not take effect on September 4, 2024. On August 20, 2024, U.S. District Judge Ada Brown for the Northern District of Texas ruled on the merits of the...more
On August 20, 2024, a Texas Federal Court issued a nationwide bar on the enforcement of the Federal Trade Commission (“FTC”) rule banning nearly all non-compete agreements (the “Final Rule”), which, as we have previously...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
The Federal Trade Commission’s efforts to ban noncompete agreements suffered a serious blow when a federal judge in Texas issued a nationwide injunction blocking the ban’s enforcement. Implementation of the ban could disrupt...more
On August 20, 2024, a Texas district court issued a decision blocking a Federal Trade Commission (FTC) Rule, which would have banned employment-related noncompete agreements....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 Decision - On Tuesday, August 20, 2024, employers throughout the country breathed a sigh of relief when a federal trial judge in Dallas struck down the FTC’s rule banning non-competes. It brought to a conclusion a...more
On April 23, 2024, the Federal Trade Commission (“FTC”) announced the “Final Non-Compete Clause Rule” banning most post-employment non-compete clauses between employers and employees. The final rule was set to take effect on...more
A Federal Court has blocked the Federal Trade Commission’s Final Rule (the “Rule”) that was set to broadly ban nearly all forms of non-compete agreements. On August 20, 2024, Judge Ada Brown of the Northern District of...more
On August 20, 2024, the United States District Court for the Northern District of Texas, Dallas Division, overturned the FTC Non-Compete Rule (16 C.F.R. § 910.1-.6), which was set to ban all new non-compete agreements in the...more
A federal judge last Tuesday blocked the FTC’s controversial ban on noncompete agreements. The judge’s ruling ends months of speculation and prevents the FTC’s near-total ban on noncompete agreements from taking effect as...more
Not so fast and not so final – for now. On August 20, 2024, U.S. District Judge Ada Brown in the U.S. District Court for the Northern District of Texas sided with a plaintiff group comprised of a limited liability company, a...more
As previously alerted, the Federal Trade Commission (FTC or Commission) voted 3-2 this past April to publish and issue a final rule that (1) bans for-profit employers from entering into agreements with workers that impose a...more
Since it was announced in May 2024, the impending FTC ban on non-competes has been mired in controversy. The Rule, which was set to go into effect on September 4, 2024, was intended to ban nearly all non-competition...more