BREAKING: Federal Court Partially Blocks FTC’s Non-Compete Rule
Posted on July 05, 2024
On July 3, 2024, a federal court in Texas granted a preliminary injunction staying the effective date of the FTC’s non-compete rule and enjoining the FTC from enforcing it against the specific plaintiffs who challenged it.
In Ryan LLC v. Federal Trade Commission, the court found that the FTC lacks the statutory authority to promulgate the final rule, and that the rule is arbitrary and capricious. However, the court declined to issue a nationwide injunction.
Therefore, while Ryan LLC may indicate how future court decisions will analyze the FTC non-compete rule, as of now, the non-compete rule is still planned to go into effect for most employers on September 4, 2024.
If you have questions about the FTC non-compete rule or other labor & employment issues, please contact your Knox Law attorney or our labor & employment group, or call us at 814-459-2800.
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