FTC's Ban on Noncompetes Blocked by Northern District of Texas Federal Court
Latest Update: As of August 20th, the U.S District Court for the Northern District of Texas has blocked the implementation and enforcement nationwide of the FTC's new rule banning non-competes. On October 18, 2024, the FTC filed a notice of appeal to challenge the August 2024 ruling by the U.S. District Court for the Northern District of Texas in Ryan LLC v. Federal Trade Commission that blocked the FTC’s final rule implementing the noncompete ban. The challenge will be heard by the Fifth Circuit Court of Appeals. Until then, the FTC noncompete ban remains enjoined by the Ryan case. Read the latest information on litigation related to the FTC rule here.
On July 3, 2024, the U.S. District Court for the Northern District of Texas put a temporary hold on the Federal Trade Commission’s Non-Compete Rule, which would ban most non-compete agreements, delaying the Rule’s September 4, 2024, effective date and application as to the plaintiffs and intervenors in that litigation.
The Court intends to rule on the ultimate merits of the action on or before August 30, 2024.
Learn more about the FTC rule at issue in the Court's ruling
To learn more about the FTC's ban on non-competes, and what it might mean if the hold is removed, you can download the FAQ guide published by Conner & Winters by clicking the button or image below.
