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Update on the State of Non-compete Restrictions (LaborSpeak)
UPIC Audits
In August 2024, a federal district court set aside the Federal Trade Commission’s rule banning non-competes. The FTC recently halted its appeals of that ruling and a similar decision, likely signaling the abandonment of a...more
On Jan. 2, 2025, the Federal Trade Commission (FTC or Commission) filed its opening brief with the Fifth Circuit Court of Appeals in Ryan LLC et.al. v. Federal Trade Commission, the case in which the plaintiffs are...more
In one of the most highly anticipated court rulings of the summer, the U.S. District Court for the Northern District of Texas set aside the FTC’s Non-Compete Rule (“Rule”), which would have effectively banned most...more
On Nov. 5, the Federal Trade Commission (FTC) filed its opening brief in its pending appeal in Properties of the Villages, Inc. v. FTC,No. 24–13102 (M.D. Florida). As previously reported, on Aug. 14, Judge Timothy Corrigan...more
The legal arguments advanced in these court cases mainly concern whether the FTC has the statutory authority to enact such a ban. Shortly before the September 4, 2024 effective date of FTC’s ban on covenants not to compete,...more
The Beltway Buzz is a weekly update summarizing labor and employment news from inside the Beltway and clarifying how what’s happening in Washington, D.C., could impact your business....more
On October 18, 2024, the Federal Trade Commission (“FTC”) gave notice that it would appeal a Texas federal court’s decision halting its non-compete rule (the “Rule”) from taking effect as to all employers nationwide. The...more
The Federal Trade Commission (FTC) has appealed a ruling from a Texas district court that set aside the FTC’s rule banning non-competes with employees (the “Rule”). As we previously reported, on August 20, 2024, Judge Ada E....more
On Oct. 18, the Federal Trade Commission (FTC) expectedly filed a notice of appeal to the Fifth Circuit Court of Appeals in Ryan LLC et.al. v. Federal Trade Commission. As has been previously reported, Judge Ada M. Brown in...more
The Federal Trade Commission (FTC) is appealing a Florida federal court ruling temporarily blocking the FTC’s noncompete ban a month after a Texas federal judge in a separate case blocked the FTC’s ban on a nationwide basis....more
The Federal Trade Commission has issued a final rule that largely bans all post-employment non-compete agreements, with limited exceptions. Two decisions in July addressed the FTC’s ban. One found the ban on post-employment...more
Just weeks after a federal court in Texas held that the Federal Trade Commission (“FTC”) exceeded its authority in issuing a rule banning nearly all non-compete agreement (and, therefore, the plaintiffs challenging that rule...more
On July 3, 2024, the United States District Court for the Northern District of Texas (the “Court”) in Ryan LLC v. Federal Trade Commission (“Ryan”) preliminarily enjoined the U.S. Federal Trade Commission (“FTC”) from...more
Recent headlines implying a general a stay of the Federal Trade Commission’s non-compete rule are misleading. Here’s what employers need to know. On April 23, 2024, the Federal Trade Commission approved a rule banning...more
On July 3, 2024, the US District Court for the Northern District of Texas stayed the September 4, 2024, implementation date (the effective date) of the Federal Trade Commission’s (FTC) Final Rule that bans all new noncompete...more
In Ryan v. Federal Trade Commission, Federal District Court Judge Ada Brown released a much-anticipated preliminary injunction decision against the Federal Trade Commission (FTC) regarding its pending “Non-Compete Ban.” Case...more
The Federal Trade Commission’s (FTC) Final Rule banning noncompete covenants for workers is likely to present particular challenges for employers in the health care industry. Because of the structural and organizational...more
On July 3, 2024, Judge Ada Brown in the Northern District of Texas issued her highly anticipated decision in Ryan LLC v. FTC addressing plaintiff Ryan LLC’s motion for a preliminary injunction seeking to stay enforcement of...more
On Wednesday, July 3, a Texas federal court enjoined the Federal Trade Commission’s (FTC) rule banning most noncompetes (the Noncompete Rule) and has stayed the implementation of the Noncompete Rule, but only as to the...more
On July 3, 2024, the U.S. District Court for the Northern District of Texas enjoined the Federal Trade Commission (FTC) from enforcing and implementing its rule banning non-competes and stayed the September 4 effective date...more
On July 3, 2024, a federal judge from the Northern District of Texas barred the Federal Trade Commission (“FTC”) from enforcing its Rule banning noncompete agreements and paused the Rule’s effective date of September 4, 2024....more
Earlier this spring, in an article titled “FTC announces nationwide ban on noncompetes in the workplace,” we alerted employers to the Federal Trade Commission’s approval of a final rule implementing a nationwide ban on...more
On July 3, 2024, in Ryan v. Federal Trade Commission, a district court in the Northern District of Texas preliminarily enjoined the implementation and enforcement against the plaintiff and plaintiffs-intervenors of a Federal...more
On July 3, 2024, U.S. District Judge Ada Brown from the Northern District of Texas issued a decision, and subsequently a preliminary injunction, staying enforcement of the Federal Trade Commission’s (“FTC”) non-compete ban...more
On July 3, 2024, a federal judge in Texas issued a preliminary injunction barring the FTC from enforcing its proposed near-absolute national ban on non-competition agreements. The Rule was scheduled to take effect September...more