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ARTICLE · 22 AUGUST 2024

Federal Court Strikes Down FTC Non-Compete Rule

Davis+Gilbert LLP
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We have previously issued alerts concerning the Federal Trade Commission's (FTC) rule banning most employee and independent contractor non-competes (the Rule) (May 6, 2024, January 26, 2023) and come to you now with a major update.

United StatesEmployment and HR
Shira Franco
Shira Franco
Gregg Gilman
Gregg Gilman
Daniel R. Friel
Daniel R. Friel
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The Bottom Line

  • A federal court in Texas has struck down the FTC's Rule banning non-competes.
  • An appeal of this decision to the Fifth Circuit is likely, and there is also a competing case in Pennsylvania that appears primed to come out in favor of the Rule, setting up a potential review by the Supreme Court.
  • The FTC has already come out to say that while mulling its next steps with respect to the Rule, it will also consider whether to address non-competes through case-by-case enforcement as well.

We have previously issued alerts concerning the Federal Trade Commission's (FTC) rule banning most employee and independent contractor non-competes (the Rule) (May 6, 2024, January 26, 2023) and come to you now with a major update.

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