One Year Later, FTC's Noncompete Ban Remains On Life Support, As FTC Mulls Pulling The Plug

As readers of this blog will recall, last April, the Federal Trade Commission (FTC) voted along party lines to finalize a rule (the Noncompete Ban) that would have banned the vast majority of employee noncompete agreements across the country. Shortly after the FTC's vote, the Noncompete Ban was challenged in three separate lawsuits: first in Texas, then in Pennsylvania, and then in a third case in Florida. The court in Pennsylvania ruled for the FTC, finding the Noncompete Ban lawful and supported by the FTC's administrative record. By contrast, the courts in Texas and Florida ruled against the FTC, both finding the Noncompete Ban to be unlawful (albeit on somewhat different grounds). And, importantly, the Texas court issued a broad, universal order, preventing the Noncompete Ban from taking effect nationwide.