enforceability of the FTC’s rule

Checking In On The FTC’s Non-Compete “Ban”

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On October 18, 2024, the Federal Trade Commission (FTC) initiated an appeal with the U.S. Court of Appeals for the Fifth Circuit, contesting the ruling issued by a Texas district court on August 20 in Ryan, LLC v. FTC, which blocked the FTC’s rule banning non-competes. As it stands, however, the Texas district court’s decision blocking the FTC’s rule from going into effect remains operative. A timeline for that appeal process has not yet been set. In the meantime, the result of the recent Presidential election may mean a change in leadership at the FTC. It is possible (even likely) …

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Uncertainty Continues Regarding Enforceability Of FTC’s Non-Compete “Ban”

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Following the April 23, 2024 vote by the Federal Trade Commission (FTC) to issue a rule largely banning non-compete agreements in employment agreements, there has been continuing uncertainty as to whether that rule will actually go into effect. Almost immediately after the rule was issued, several companies and industry groups filed lawsuits seeking to block the rule’s application. The central argument articulated by these litigants is that the FTC lacks the statutory rulemaking authority to issue the non-compete “ban.” As of now, the rule remains scheduled to go into effect on September 4, 2024. These cases have started to progress …

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