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Non-Compete Agreements › Texas › Employment Litigation

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 -
Hendershot Cowart P.C.

Are Non-Compete Agreements Banned in Texas?

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Last year in April, the Federal Trade Commission (FTC) published a rule to ban most non-compete agreements nationwide. Within hours the rule was challenged in courts across the country, and after months of federal litigation...more

Hendershot Cowart P.C.

Timeline: What Happens After Breaking a Non-Compete Agreement in Texas

Hendershot Cowart P.C. on

Responding to a Non-Compete Violation - When an employer discovers a potential non-compete violation, they generally react within 1-4 weeks, though this can be shorter if the violation poses an immediate competitive threat....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

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

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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

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

Steptoe & Johnson PLLC

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

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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

Brooks Pierce

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

Brooks Pierce on

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

Sullivan & Worcester

Uncertainty Heightened as Two District Courts Reach Conflicting Conclusions on FTC Non-Compete Ban’s Enforceability

Sullivan & Worcester on

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

Keating Muething & Klekamp PLL

District Court Finds in Favor of FTC, Declines to Issue Injunction

Keating Muething & Klekamp PLL on

The Federal Trade Commission’s (FTC) push to invalidate non-compete agreements for millions of workers gained steam today, courtesy of a ruling out of the Eastern District of Pennsylvania. As noted by this blog, in April of...more

A&O Shearman

FTC's non-compete rule in limbo following Texas District Court’s preliminary injunction

A&O Shearman on

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

Moore & Van Allen PLLC

Employers in Limbo After Ruling on FTC’s Non-Compete Ban

Moore & Van Allen PLLC on

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

McDermott Will & Schulte

Texas Court Postpones FTC Noncompete Ban

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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

Perkins Coie

Employers Left in Limbo by FTC Noncompete Decision

Perkins Coie on

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

ArentFox Schiff

FTC Rule Addressing Noncompete Covenants: Impact of Senior Executive Exception on Health Care Entities

ArentFox Schiff on

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

Foley Hoag LLP

Federal Court Stays FTC’s Noncompete Ban, But Only for Named Plaintiffs

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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

Bradley Arant Boult Cummings LLP

FTC’s Non-Compete Rule Enjoined for Now – But Only as to the Plaintiffs

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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

Akin Gump Strauss Hauer & Feld LLP

FTC Non-Compete Ban Preliminarily Enjoined by Texas District Court

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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

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