FTC Non-Competition Final Rule Update

On July 3, 2024, a Texas federal Northern District Court granted a preliminary injunction to the Plaintiff and the four Intervening Plaintiffs in the matter of Ryan v. Federal Trade Commission. The preliminary injunction enjoins the Federal Trade Commission's ("FTC") Final Rule prohibiting non-competition agreements from being implemented and enforced as to the Plaintiff and Intervening Plaintiffs only. In addition, the Court enjoined the effective date of the Final Rule, again limiting the injunction to the Plaintiff and Intervening Plaintiffs only.

The Court declined to enter a universal injunction or to extend the injunction to members of the Plaintiff-Intervenors' business associations. The Court noted that it intends to resolve the case on the merits, presumably including the scope of relief, by August 30, 2024. In addition, there is another case pending in the Eastern District of Pennsylvania, and the case there is on a fast track, as well.