Alerts9.9.24

Nationwide Injunction Halts FTC’s Non-Compete Ban – For Now

Non-compete contract

Highlights

A Texas federal judge issued a nationwide injunction in late August preventing the FTC from enforcing its new rule against non-compete agreements

While the FTC has accepted the ruling and is considering an appeal, employers do not need to send out the notice identified in the FTC’s rule

States will continue limiting the use of restrictive covenants and employers should audit their agreements to ensure they comply with ever-changing regulations


On Aug. 20, a Texas federal judge issued a nationwide injunction preventing the Federal Trade Commission (FTC) from enforcing its new rule banning non-competes, which was set to go into effect on Sept. 4, 2024.

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