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Non-Compete Agreements › Texas › Employer Liability Issues

Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a... more +
Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -
Bradley Arant Boult Cummings LLP

New Healthcare Practitioner Non-Compete Provisions Effective September 1, 2025

Bradley Arant Boult Cummings LLP on

On June 20, 2025, Texas enacted SB 1318, modifying the criteria for enforceable healthcare practitioner non-competes in the Texas Business and Commerce Code. The modifications (1) limit the scope of enforceable physician...more

Sheppard Mullin Richter & Hampton LLP

Texas Enacts Massive Reforms to Healthcare Provider Non-Competes

Sheppard Mullin Richter & Hampton LLP on

Beginning September 1, 2025, Texas will significantly narrow the permissible scope of non-compete agreements with certain healthcare employees. The legislation, Senate Bill 1318 (“SB 1318” codified in Tex. Bus. Com. Code §...more

Perkins Coie

Texas Lawmaker Introduces Bill To Ban Noncompete Agreements

Perkins Coie on

Texas Representative Christina Morales (D) introduced Texas House Bill 4067 (HB 4067), which seeks to prohibit most noncompete agreements in the state of Texas, on March 7, 2025.  This bill, if enacted, would broadly restrict...more

Hendershot Cowart P.C.

Legal Alternatives to Breaking a Non-Compete Agreement in Texas

Hendershot Cowart P.C. on

Many employees feel trapped by non-compete agreements, but there are legal ways to handle these restrictive employment agreements. Before risking legal action by breaking your agreement, consider these alternatives....more

Cranfill Sumner LLP

FTC Appeals Order Striking Down Noncompete Ban

Cranfill Sumner LLP on

On October 18, 2024, the Federal Trade Commission (FTC) appealed to the Fifth Circuit a Texas federal court’s decision to strike down the FTC’s nationwide noncompete ban. This comes hot on the heels of the FTC’s September 24,...more

Morrison & Foerster LLP

FTC Appeals Texas Court’s Ruling Blocking FTC’s Non-compete Ban

Morrison & Foerster LLP on

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

Spilman Thomas & Battle, PLLC

The FTC’s Rule Banning Noncompete Agreements is Dead. Long Live Noncompete Agreements?

Spilman Thomas & Battle, PLLC on

Earlier this year, the Federal Trade Commission (FTC) announced a Final Rule outlawing nearly all noncompete agreements between employers and employees. That Final Rule, however, was overturned at the end of August 2024....more

Jenner & Block

Non-Competition Agreements; FTC Rule Status

Jenner & Block on

As we previously reported, on April 23, 2024, the Federal Trade Commission (FTC) announced their final rule banning most “non-competition” agreements. The FTC determined non-competition agreements were an unfair method of...more

Skadden, Arps, Slate, Meagher & Flom LLP

FAQs About the Set-Aside of the FTC’s Ban on Noncompetes

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In Ryan LLC v. Federal Trade Commission, the Federal Trade Commission’s (FTC’s) final noncompete rule was held to be “unlawful and set aside” by Judge Ada Brown of the U.S. District Court for the Northern District of Texas....more

Cranfill Sumner LLP

Texas Court Strikes Down FTC’s Noncompete Ban Nationwide

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On August 20, 2024, United States District Judge Ada Brown (Northern District of Texas) issued an order that the Federal Trade Commission’s controversial noncompete ban “shall not be enforced or otherwise take effect on...more

Perkins Coie

Texas District Court Upends FTC Noncompete Rule

Perkins Coie on

In the case of Ryan LLC v. Chamber of Commerce of the United States of America, et al., Judge Ada Brown of the U.S. District Court for the Northern District of Texas issued an order with “nationwide effect” on August 20,...more

Skadden, Arps, Slate, Meagher & Flom LLP

FTC Noncompete Rule Is Set Aside, But Appeal Is Expected and States May Act

Skadden, Arps, Slate, Meagher & Flom LLP on

On August 20, 2024, in Ryan LLC v. Federal Trade Commission, a district court in the Northern District of Texas held “unlawful and set[] aside” the Federal Trade Commission’s (FTC) Non-Compete Rule, 16 C.F.R. § 910.1–.6. That...more

Brownstein Hyatt Farber Schreck

FTC Noncompete Rule Set Aside by Federal Texas District Court, Will Not Become Effective

Brownstein Hyatt Farber Schreck on

A U.S. District Court judge in Texas has set aside the Federal Trade Commission’s (FTC) controversial noncompete rule, ruling that it will not become effective on Sept. 4 as previously scheduled and cannot be enforced by the...more

Steptoe & Johnson PLLC

Texas Federal Court Invalidates FTC’s Non-Compete Ban As Unconstitutional

Steptoe & Johnson PLLC on

A federal judge in Texas has barred enforcement of the Federal Trade Commission’s (FTC’s) new regulations, which otherwise would have banned most non-compete agreements. Holding that the FTC lacked statutory authority to...more

Shutts & Bowen LLP

Breaking News: Federal Judge Blocks Nationwide Implementation of the FTC’s New Rule Banning Noncompete Agreements

Shutts & Bowen LLP on

On August 20, 2024, U.S. District Judge Ada Brown in Texas issued a final order in the pending case, Ryan v. FTC, holding that the Federal Trade Commission (FTC) exceeded its authority in issuing a ban on noncompete clauses....more

Sheppard Mullin Richter & Hampton LLP

Final Word on Final Rule? Texas District Court Eviscerates FTC’s Non-Compete Ban

Sheppard Mullin Richter & Hampton LLP on

On July 3, 2024, Judge Ada Brown of the U.S. District Court for the Northern District of Texas entered a limited, preliminary injunction barring the Federal Trade Commission (“FTC”) from enforcing its controversial Final Rule...more

Brooks Pierce

Texas Court Issues Nationwide Ban on FTC’s Non-Compete Rule; Appeals Expected

Brooks Pierce on

On August 20, 2024, a Texas federal court ruled that the FTC’s final rule banning most non-compete agreements (the “Non-Compete Rule”) cannot go into effect as scheduled. Many employers had been preparing to comply with the...more

Eversheds Sutherland (US) LLP

Failure to launch – Texas court grants nationwide permanent injunction, icing the FTC’s noncompete ban indefinitely

Eversheds Sutherland (US) LLP on

The Federal Trade Commission’s (FTC) nationwide ban on post-employment noncompetition agreements is no more following a Northern District of Texas judge’s ruling imposing a nationwide permanent injunction. Although a long and...more

Foley Hoag LLP

Federal Judge Blocks FTC’s Noncompete Rule Nationwide

Foley Hoag LLP on

On August 20, 2024, Judge Brown of the Northern District of Texas blocked the FTC’s Final Rule banning noncompetes. The decision comes just over a month after Judge Brown’s preliminary injunction order, which stayed the rule...more

McDermott Will & Schulte

Texas Court Issues Nationwide Injunction Striking Down the FTC Noncompete Ban

McDermott Will & Schulte on

On August 20, 2024, the US District Court for the Northern District of Texas issued a nationwide injunction barring the Federal Trade Commission’s (FTC) Final Rule that bans all noncompete agreements. The court’s findings...more

Schwabe, Williamson & Wyatt PC

Court Blocks FTC’s Nationwide Ban on Non-Compete Agreements

Schwabe, Williamson & Wyatt PC on

On August 20, the U.S. District Court for the Northern District of Texas in Ryan, LLC et al. v. Federal Trade Commission, granted the plaintiffs’ motions for summary judgment and found the Federal Trade Commission’s ban on...more

Butler Snow LLP

Texas Court Enjoins FTC From Enforcing Noncompete Rule

Butler Snow LLP on

As expected, a Texas federal court issued a ruling on August 20, 2024, declaring that the Federal Trade Commission’s (“FTC’s”) new rule purporting to ban nearly all noncompete agreements shall not “take effect on its...more

DarrowEverett LLP

What Texas Court’s Decision on Non-Competes Means for Businesses

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The Federal Trade Commission’s (FTC) ambitious attempt to implement a nationwide ban on non-compete agreements (with limited exceptions) has hit a significant legal roadblock. On August 20, 2024, U.S. District Judge Ada Brown...more

Epstein Becker & Green

Texas Court Shoots Down FTC Noncompete Ban Nationwide

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Ten days ahead of her self-imposed deadline, Judge Ada Brown of the Northern District of Texas issued a memorandum opinion and order granting the plaintiffs’ motions for summary judgment, setting aside the Federal Trade...more

Brooks Pierce

Pennsylvania Court Refuses to Halt Enforcement of FTC’s Final Rule, Diverging From Recent Texas Court Ruling

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On July 23, 2024 a Federal District Court in Pennsylvania denied an employer plaintiff’s efforts to temporarily halt implementation and enforcement of the FTC’s final rule banning “non-compete clauses” (the “Final Rule”). The...more

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