August 21, 2024
The pending regulations issued by the Federal Trade Commission (“FTC” or the “Commission”) that largely banned the use of noncompete restrictions have been enjoined on a nationwide basis, and the regulations will not go into effect on September 4th as scheduled.
On August 20, 2024, U.S. District Court Judge Ada Brown of the Northern District of Texas in Ryan, LLC v. Federal Trade Commission blocked the Federal Trade Commission’s near complete ban of noncompete agreements. The FTC issued the final rule banning most noncompetes on April 23, 2024. The FTC is expected to appeal the decision to the Fifth Circuit Court of Appeals.