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