The Federal Trade Commission (FTC) issued a final rule that was set to essentially ban noncompete agreements nationwide. However, in August of this year, the U.S. District Court for the Northern District of Texas struck down the FTC’s ban, finding that the FTC, among other things, exceeded its statutory authority in promulgating the rule.
Now, the FTC has filed a notice of appeal to challenge the District Court’s ruling, meaning this legal saga is far from over. We will keep you informed as the appeal progresses through the court system.
Keep in mind that certain states have their own limitations on noncompete agreements. Those state-level limitations remain in effect at this time.
