(July 12, 2024) – On July 3, the U.S. District Court for the Northern District of Texas in
Ryan LLC V. Federal Trade Commission issued a preliminary injunction to stop the Federal Trade Commission from enforcing its non-compete rule which, absent the order, would go into effect on Sept. 4, 2024. The rule prohibits nearly all employee non-compete agreements with limited exceptions. The court's order prohibits the FTC from enforcing the rule against the plaintiffs until it makes its final decision on or before Aug. 30, 2024. With another federal court case pending in Pennsylvania challenging the rule and additional legal challenges expected to make their way through the U.S. Court of Appeals and potentially the U.S. Supreme Court, it may be some time before the ability of the FTC to enforce the non-compete rule is decided.
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Audrey Dunkel