News & Analysis as of

Statutory Authority Restrictive Covenants

Stevens & Lee

FTC Requests Additional 60 Days to Consider Dropping Defense of Noncompete Ban

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A reconstituted Federal Trade Commission (Commission) has asked the Fifth Circuit Court of Appeals to grant it a 60-day continuance to consider whether to drop the defense of its rule banning noncompetes. As previously...more

Kerr Russell

FTC’s Ban on Covenants Not to Compete Remains on Hold

Kerr Russell on

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

Polsinelli

Stay Tuned… FTC Seeks to Breathe Life Back Into Non-Compete Ban

Polsinelli on

This past week, the FTC appealed a Texas federal court’s August ruling that blocked nationwide enforcement of the non-compete ban. The non-compete ban will remain blocked during the pendency of the appeal process. However,...more

Fisher Phillips

Breaking Down the FTC Non-Compete Ban Appeals: Heading to a Circuit Split and SCOTUS Intervention?

Fisher Phillips on

The Federal Trade Commission has appealed two federal trial court decisions – one in Texas and one in Florida – that prevented the agency from enforcing its near-total ban on non-compete agreements. The Texas appeal, filed on...more

Stevens & Lee

FTC Appeals Decision in the Ryan Case: Fate of the Noncompete Rule Now Rests in the Appeals Courts

Stevens & Lee on

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

Ogletree, Deakins, Nash, Smoak & Stewart,...

Pennsylvania Company Drops Challenge to FTC Noncompete Ban After Injunction Denial

A Pennsylvania company has dropped its challenge to the Federal Trade Commission’s (FTC) noncompete ban after a Pennsylvania federal judge denied the company’s bid to block the rule. The dismissal of the Pennsylvania lawsuit...more

Goodell, DeVries, Leech & Dann, LLP

FTC Final Rule on Noncompete Clauses: Pending Litigation

There are several legal challenges to the Federal Trade Commission’s (FTC) ban on noncompete clauses in employment agreements. There have been multiple lawsuits in varying federal district courts that seek to delay or...more

Ervin Cohen & Jessup LLP

FTC’s Nationwide Ban on Non-Compete Agreements Stopped by Federal Court Ruling

The FTC’s effort to implement a nationwide ban on the use of most non-compete agreements has been stalled indefinitely following a recent court ruling by a district court judge in Texas....more

Cadwalader, Wickersham & Taft LLP

FTC’s Rule Banning Non-Compete Agreements Is “Set Aside” Nationwide in District Court Ruling, But Two District Courts Find FTC...

The Federal Trade Commission’s (the FTC) rule prohibiting the entering into or enforcement of non-compete clauses between employers and employees (the Non-Compete Rule) made final in April 2024 and originally scheduled to go...more

Epstein Becker & Green

#WorkforceWednesday®: After the Block - What’s Next for Employers and Non-Competes? - Spilling Secrets Podcast - Employment Law...

Epstein Becker & Green on

This week, on our Spilling Secrets podcast series, our panelists delve into the implications for employers following the recent blockage of the Federal Trade Commission’s (FTC’s) non-compete ban. On August 20, 2024, the U.S....more

Clark Hill PLC

The FTC Rule Banning Noncompetes Has Been Struck Down – For Now

Clark Hill PLC on

On Aug. 20, a new federal court decision from the Northern District of Texas in Ryan LLC v. Federal Trade Commission halted enactment of the Federal Trade Commission’s (“FTC”) Rule banning noncompete agreements throughout the...more

Patterson Belknap Webb & Tyler LLP

Court Blocks FTC Rule Banning Almost All Worker Non-Compete Deals

A federal court has issued a nationwide injunction blocking enforcement of the Federal Trade Commission’s (“FTC”) new rule that would ban nearly all non-competition (“non-compete”) deals. The rule, issued on April 23, 2024...more

Pillsbury Winthrop Shaw Pittman LLP

District Court Ruling Bars Federal Trade Commission Non-Compete Rule for the Near Term

With further proceedings anticipated, and in light of the numerous state law restrictions on non-competes, employers should continue to act with caution when presenting employees with non-compete agreements. On August 20,...more

Stokes Wagner

Federal Noncompete Ban Struck Down

Stokes Wagner on

The District Court for the Northern District of Texas issued a decision striking down the Federal Trade Commission’s rule banning non-compete agreements, which was set to take effect on September 4, 2024....more

BCLP

Federal Court Strikes Down FTC’s Non-Compete Ban

BCLP on

Employers can breathe a sigh of relief as a Texas federal judge set aside the Federal Trade Commission’s (FTC) impending ban on non-compete clauses.  The FTC published a final rule banning all non-compete clauses with...more

Rumberger | Kirk

Ramifications of Ryan: The Future of the FTC’s Final Rule Banning Non-Competes

Rumberger | Kirk on

The Federal Trade Commission’s Final Rule banning non-competes will not take effect on September 4, 2024. On August 20, 2024, U.S. District Judge Ada Brown for the Northern District of Texas ruled on the merits of the...more

Flaster Greenberg PC

Texas Court Puts a Stop to FTC's Non-Compete Ban

Flaster Greenberg PC on

On August 20, 2024, a Texas Federal Court issued a nationwide bar on the enforcement of the Federal Trade Commission (“FTC”) rule banning nearly all non-compete agreements (the “Final Rule”), which, as we have previously...more

Foley & Lardner LLP

FTC’s Ban on Noncompete Agreements Is Blocked

Foley & Lardner LLP on

The Federal Trade Commission’s efforts to ban noncompete agreements suffered a serious blow when a federal judge in Texas issued a nationwide injunction blocking the ban’s enforcement. Implementation of the ban could disrupt...more

Perkins Coie

August Tip of the Month: Court Blocks FTC Rule Banning Employment-Related Noncompete Agreements

Perkins Coie on

On August 20, 2024, a Texas district court issued a decision blocking a Federal Trade Commission (FTC) Rule, which would have banned employment-related noncompete agreements....more

Tucker Arensberg, P.C.

The FTC’s Non-Compete Rule Has Been Struck Down and Will No Longer Take Effect on September 4, 2024.

Tucker Arensberg, P.C. on

On August 20, 2024, the United States District Court for the Northern District of Texas, Dallas Division, set aside the Federal Trade Commission’s “Non-Compete Rule” (the “Rule”). ...more

Jackson Lewis P.C.

Battle Over/War Isn’t: Employer Considerations Now That FTC Non-Compete Ban Is Set Aside

Jackson Lewis P.C. on

A Texas court has set aside the Federal Trade Commission’s (FTC’s) Final Rule banning almost all non-compete clauses days before it was set to take effect on Sept. 4. Ryan LLC v. FTC, No. 3:24-CV-00986-E, 2024 U.S. Dist....more

Mitchell, Williams, Selig, Gates & Woodyard,...

United States District Court Blocks FTC's Final Rule Banning Non-Compete Agreements

On April 23, 2024, the Federal Trade Commission (“FTC”) announced the “Final Non-Compete Clause Rule” banning most post-employment non-compete clauses between employers and employees. The final rule was set to take effect on...more

Akerman LLP - HR Defense

Ban on the Run: Federal Court Blocks the FTC’s Non-Compete Ban Nationwide

A Federal Court has blocked the Federal Trade Commission’s Final Rule (the “Rule”) that was set to broadly ban nearly all forms of non-compete agreements. On August 20, 2024, Judge Ada Brown of the Northern District of...more

Venable LLP

FTC Rule Largely Banning Non-Competes Put on Ice by Federal Judge

Venable LLP on

This past April, the Federal Trade Commission (FTC) proposed a rule (Rule) that amounted to a near total nationwide ban on employers’ use of non-compete agreements. Since its announcement, employers have actively attempted to...more

Sunstein LLP

FTC Ban on Non-Competes Thwarted by Texas Federal Court

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Since it was announced in May 2024, the impending FTC ban on non-competes has been mired in controversy. The Rule, which was set to go into effect on September 4, 2024, was intended to ban nearly all non-competition...more

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