FTC Appeals Recent Losses In Non-Compete Rule Litigation, And Another Litigant Drops Its Challenge

We reported last month that the district court in the northern district of Texas had "set aside" the Federal Trade Commission's recently finalized rule prohibiting employers from entering into, and enforcing, non-compete agreements with employees (the Rule). Ryan, LLC v. Federal Trade Commission, N.D. Texas, Aug. 20, 2024. The set-aside operates to enjoin enforcement of the Rule, nationwide. The FTC, on October 18, gave notice that it will appeal the district court's ruling to the 5th Circuit.

We also reported last month that the district court in the middle district of Florida had granted a preliminary injunction enjoining the FTC from enforcing the Rule against plaintiff Properties of the Villages. Properties of the Villages v. Federal Trade Commission, M.D., Florida, August 14, 2024. On September 24, the FTC gave notice that it will appeal that decision to the 11th Circuit.