District Court Halts FTC Non-Compete Ban

The FTC’s non-compete ban has been blocked. On Aug. 20, 2024 the U.S. District Court for the Northern District of Texas in Ryan, LLC v. FTC  blocked the FTC’s non-compete rule which was released earlier this year and originally scheduled to go into effect on September 4, 2024. The Court granted the Plaintiff-Intervenors’ motion for summary judgment, holding that the FTC’s non-compete rule is unlawful, and ordered that the non-compete rule shall not take effect on September 4, 2024, or thereafter. 

The FTC’s non-compete rule would have rendered noncompete agreements unenforceable for most workers. The Court’s order means that the FTC cannot currently enforce the non-compete ban against any employer, nationwide.

Contact attorney Emily Gordon for guidance on navigating non-competes in the current legal landscape.