As you know, the Federal Trade Commission (FTC) issued a final rule that essentially bans noncompete agreements nationwide (with few exceptions). The rule is set to take effect on September 4, 2024.
The U.S. District Court for the Northern District of Texas, however, has now issued a preliminary ruling preventing the ban from taking effect against certain plaintiffs who had sued the FTC for exceeding its statutory authority in promulgating the rule.
A final decision on the merits has not yet been reached. When it is reached, it is possible that the decision will reverse the FTC’s ban nationwide. We will continue to update you as this case develops.
