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

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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FTC Rule Banning Non-Competes Vacated By Texas Court

The Federal Trade Commission (FTC) Rule banning nearly all post-employment non-compete agreements has been vacated, so will not be going into effect on September 4, 2024. On August 20, 2024, the U.S District Court for the Northern District of Texas in Ryan, LLC v. FTC issued an Order on a Motion for Summary Judgment in which the Court vacated the FTC Rule. Specifically, the Court states: “The Court sets aside the Non-Compete Rule. Consequently, the Rule shall not be enforced or otherwise take effect on its effective date of September 4, 2024 or thereafter.” This decision provides welcome clarity in …

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