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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
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
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
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
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
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
In a ruling issued Tuesday, August 20, 2024, the U.S. District Court for the Northern District of Texas struck down the Federal Trade Commission’s (“FTC”) Noncompete Rule banning nearly all noncompete agreements, which had...more
As every employer in the U.S. is likely aware, the Federal Trade Commission’s (“FTC”) near-universal ban on non-competes nationwide, which the FTC voted to implement via regulatory rulemaking on April 23 of this year, has...more
Winstead’s Labor & Employment team previously reported that the Federal Trade Commission (“FTC”) issued its final rule largely banning noncompetes nationwide (“Rule”), spurring races to the courthouse in the federal district...more
The hot mess known as the FTC Rule to Ban Non-Competes (“Rule”) continues to get hotter and messier as two Federal District Courts issue conflicting opinions. This conflict between the Federal Courts will not be resolved...more
With the effective date of the FTC’s ban on non-competes looming, a federal Judge in Pennsylvania declines to issue a preliminary injunction. A federal judge in Pennsylvania recently declined to enter an injunction...more
As we previously reported, on April 23, 2024, the Federal Trade Commission (FTC) adopted a final rule banning post-employment noncompete agreements nationwide, with limited exceptions related to the sale of a business and any...more
Since it was first published in April, the fate of the Federal Trade Commission’s (FTC) final non-compete rule has been, to put it mildly, less than certain. Now, about a month before the rule is scheduled to take effect, the...more
Earlier this month, we reported on a preliminary injunction granted to the plaintiffs in a lawsuit filed in federal district court in Texas, seeking to block the Federal Trade Commission’s regulations voiding most employment...more
July was a busy month for courts analyzing the FTC’s rulemaking authority. In April, the FTC published its final rule banning most employment-based noncompetition agreements (the Noncompete Rule). Immediately after the FTC...more
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
Last week, we received the first indication of a Texas federal court’s position on a lawsuit filed by the U.S. Chamber of Commerce challenging the validity of the Federal Trade Commission’s new regulations banning most...more
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
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
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
Winstead’s Labor & Employment team previously reported that the FTC issued its final rule on the proposed noncompete ban and that a Dallas-based tax services company filed suit in Texas seeking a stay of the FTC’s rule. Back...more