Letter From the Editors
Despite FTC's Non-Compete Ban Being Enjoined,
Companies Still Must Be Mindful of Non-Compete Employment
Provisions
For much of 2023 and 2024, the U.S. Federal Trade
Commission's (FTC or Commission) efforts to prohibit
non-compete agreements between companies and workers garnered
significant attention. Since the FTC's final rule prohibiting
many non-competes between companies and workers (the Final Rule or
Non-Compete Ban)1 was finalized in April 2024,
there have been multiple challenges to its enforceability —
particularly as it relates to the ability of the FTC to make and
enforce substantive rules regarding unfair methods of competition.
In the last few months, federal courts have now weighed in. Most
notably, on August 20, 2024, the U.S. District Court for the
Northern District of Texas issued an order to enjoin the FTC from
enforcing the Non-Compete Ban nationwide.2
While the FTC's Non-Compete Ban has been enjoined, companies
still