A Preliminary Ruling Strikes The FTC’s Non-Compete Ban, But Leaves Employers With Significant Compliance Issues And Little Time
On April 23, 2024, the FTC, by a 3 -2 party line vote, passed a new rule, banning nearly all noncompetition agreements in the United States, in all businesses subject to FTC jurisdiction (the “Rule”). We commented on the Rule in our May 16, 2024 Client Alert, and noted the likelihood of serious legal challenges, including ones based on the FTC’s rulemaking authority, FTC overreach and other issues.
On July 3, 2024, a Texas Federal District […]