FTC’s “Ban” on Non-Competes

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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The FTC’s “Ban” on Non-Competes

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On April 23, 2024, the Federal Trade Commission (FTC) voted to issue a new rule largely prohibiting non-compete restrictions in the workplace. This groundbreaking rule was published in the Federal Register on May 7, 2024, and is presently scheduled to become effective on September 4, 2024. However, the FTC’s final rule has already been subjected to court challenges, so it bears watching whether it will, in fact, go into effect at that time. Notwithstanding the present uncertainty, employers and employees alike should understand the wide-ranging implications of the FTC’s new rule as it could largely reshape the dynamics of employer-employee …

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