News & Analysis as of

Texas Unfair Competition Federal Bans

Kerr Russell

FTC’s Ban on Covenants Not to Compete Remains on Hold

Kerr Russell on

The legal arguments advanced in these court cases mainly concern whether the FTC has the statutory authority to enact such a ban. Shortly before the September 4, 2024 effective date of FTC’s ban on covenants not to compete,...more

Pillsbury Winthrop Shaw Pittman LLP

District Court Ruling Bars Federal Trade Commission Non-Compete Rule for the Near Term

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

Tarter Krinsky & Drogin LLP

FTC Non-Compete Ban Set Aside

Last week, on the eve of the effective date of the FTC's ban on non-compete agreements, a Texas federal district court found that the agency had exceeded its authority in enacting the ban. The Court also explained that its...more

Jackson Lewis P.C.

Battle Over/War Isn’t: Employer Considerations Now That FTC Non-Compete Ban Is Set Aside

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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

Weintraub Tobin

FTC Rule Ruled Unenforceable Nationwide

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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

Greenbaum, Rowe, Smith & Davis LLP

Federal District Court in Texas Blocks FTC Non-Compete Final Rule

On August 20, 2024, the United States District Court for the Northern District of Texas invalidated the Federal Trade Commission’s (FTC) ban on most non-compete provisions. As we have previously advised, the FTC’s final rule...more

Constangy, Brooks, Smith & Prophete, LLP

The FTC noncompete ban is dead. Here are five steps employers should take now.

You no doubt have heard that on August 20, a federal judge in the Northern District of Texas set aside the Rule issued by the Federal Trade Commission that sought to ban virtually all noncompetition agreements as unfair...more

Wiley Rein LLP

Texas Federal District Court Sets Aside Federal Trade Commission Non-Compete Ban Nationwide

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On Tuesday, August 20th, the U.S. District Court for the Northern District of Texas issued a nationwide injunction barring enforcement of the Federal Trade Commission's (FTC) ban on non-compete agreements in employment...more

McCarter & English, LLP

The FTC’s Non-Compete Rule “Set Aside:” What Next for Employers and Employees?

After a series of preliminary, narrowly decided, and conflicting court decisions concerning requests for preliminary injunctions (see August 20, 2024 Alert), a federal district court in Texas has now entirely set aside the...more

Levenfeld Pearlstein, LLC

Texas Federal Court Strikes Down FTC’s Non-Compete Ban

On Tuesday, August 20, U.S. District Judge Ada Brown granted summary judgment, in favor of blocking the Federal Trade Commission’s (“FTC”) rule banning non-competes (the “Rule”). The Rule, which had been scheduled to go into...more

Schwabe, Williamson & Wyatt PC

Court Blocks FTC’s Nationwide Ban on Non-Compete Agreements

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

Gould + Ratner LLP

Texas Federal Court Strikes Down FTC Noncompete Rule

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In the first definitive ruling on the Federal Trade Commission’s Final Rule banning most noncompete agreements, the Texas federal judge that previously granted a preliminary injunction to temporarily block the Final Rule from...more

Fox Rothschild LLP

Federal Court Blocks FTC's Ban on Noncompete Agreements

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A federal court in Texas has determined the Federal Trade Commission’s (FTC) final rule prohibiting most noncompete agreements is unlawful, meaning that for now, employers in jurisdictions that permit such agreements can...more

Morrison & Foerster LLP

Good News for Employers: Texas Court Blocks FTC’s Nationwide Non-Compete Ban

On August 20, 2024, a judge in the U.S. District Court for the Northern District of Texas granted a nationwide injunction against the Federal Trade Commission’s (“FTC’s”) rule banning non-competes with employees (the “Rule”)....more

Cozen O'Connor

FTC’s Final Rule Banning Employee Noncompete Agreements Struck Down [Alert]

Cozen O'Connor on

We first discussed the Federal Trade Commission’s (FTC) Proposed Rule banning noncompete agreements in our January 9, 2023, Client Alert, and again on April 25, 2024, when the FTC issued its Final Rule. The effective date of...more

Cole Schotz

Texas District Court Strikes Down the FTC’s Non-Compete Ban on a Nationwide Basis

Cole Schotz on

On August 20, 2024, in Ryan LLC v. Federal Trade Commission, Judge Ada Brown of the U.S. District Court for the Northern District of Texas barred the Federal Trade Commission’s (“FTC”) Non-Compete Rule (the “Rule”) from...more

Tonkon Torp LLP

Texas Court Strikes Down FTC Rule Banning Noncompetition Agreements Weeks Before Enforcement

Tonkon Torp LLP on

On Tuesday, August 20, 2024, the U.S. District Court for the Northern District of Texas struck down the Federal Trade Commission’s (FTC’s) final rule banning most noncompetition agreements. The FTC was set to start enforcing...more

Houston Harbaugh, P.C.

Texas Federal Court Strikes Down FTC Ban on Non - Competes in Ryan v. FTC

Houston Harbaugh, P.C. on

The long awaited collision between the Federal Trade Commission (FTC) and the varied political and legal opinions on the legality of Employment Non-Compete Agreements (Non-Competes) is now moving up the ladder of...more

Husch Blackwell LLP

FTC Non-Compete Ban Enjoined Nationwide

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Late Tuesday, August 20, 2024, a Federal Court in Texas issued a decision which enjoins – on a nationwide basis – the FTC’s final rule which would effectively ban all non-competes with limited exceptions. While we expect the...more

Stevens & Lee

With Effective Date Fast Approaching, the FTC’s Noncompete Ban Is Set Aside

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In a decision on Aug. 20 impacting employers and employees nationwide, the U.S. District Court for the Northern District of Texas granted Plaintiff Ryan LLC’s motion for summary judgment, set aside the FTC’s Noncompete Rule...more

Warner Norcross + Judd

FTC Noncompete Rule Set Aside with Nationwide Effect

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On August 20, 2024, a Texas federal court blocked the Federal Trade Commission’s (FTC) Noncompete Rule scheduled to go into effect on September 4, 2024. Unlike a preliminary injunction entered earlier this year, which only...more

Shipman & Goodwin LLP

Federal Court Injunction Bars FTC’s Non-Compete Agreement Ban

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A federal court in Texas yesterday issued a permanent nationwide injunction barring the Federal Trade Commission’s Non-Compete Agreement Ban from going into effect. As a practical matter, and barring an unlikely reversal...more

Hinshaw & Culbertson - Employment Law...

FTC Faces Setback in U.S. District Court Over Noncompete Rule

On July 3, 2024, Judge Ada Brown of the United States District Court for the Northern District of Texas preliminarily enjoined the Federal Trade Commission ("FTC") from enforcing the Final Noncompete Rule ("Rule") against the...more

Axinn, Veltrop & Harkrider LLP

Court Temporarily Halts FTC Proposed Rule on Non-Competes

The FTC’s recent rule largely rendering employment-related non-compete covenants unenforceable has hit a roadblock—at least with respect to the named plaintiffs in the first-filed challenge, Ryan, LLC v. FTC. To recap...more

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