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ARTICLE · 27 AUGUST 2024

FTC's Non-Compete Ban Is Unenforceable? Blocked? Gone?

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Yesterday, a Texas federal judge issued a nationwide injunction preventing the Federal Trade Commission (FTC) from enforcing its notorious rule banning non-competes. The rule, scheduled to go into effect...

United StatesEmployment and HR
Emily C. Lodge
Emily C. Lodge
Christopher Rubey
Christopher Rubey
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Yesterday, a Texas federal judge issued a nationwide injunction preventing the Federal Trade Commission (FTC) from enforcing its notorious rule banning non-competes. The rule, scheduled to go into effect on Sept. 4, 2024, not only prohibits almost all non-competes, but also requires employers to notify all current and former workers subject to a non-compete that their non-compete is no longer enforceable.

In Ryan LLC v. FTC, tax company Ryan LLC, along with intervenor the U.S. Chamber of Commerce, argued the FTC's ban surpassed its authority. In early July, U.S. District Judge Ada E. Brown agreed, but limited the decision to the plaintiffs in that case until rendering a final decision.

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