The United States District Court for the Northern District of Texas issued an order blocking the Federal Trade Commission’s (FTC) non-compete ban from taking effect on Aug. 20, 2024. In Ryan LLC v. Federal Trade Commission, 2:24-cv-986, Plaintiffs successfully argued that the FTC exceeded its statutory authority in propounding a nationwide ban on non-compete agreements. Originally set to take effect on Sept. 4, 2024, the ban—which would have voided millions of employment agreements—has now been paused as a result of the decision.Continue Reading FTC’s non-compete ban blocked by Texas federal judge

The dust is still settling after the U.S. Federal Trade Commission (FTC) issued its long anticipated final Rule on Tuesday, April 23 banning most non-compete agreements in the employment context. Although the effectiveness of the Rule is likely to be delayed, potentially for years, by court challenges, employers are understandably jittery about their existing non-compete agreements and other restrictive covenants.  Here with answers to some of the most commonly asked questions are Porter Wright employment attorneys Jennifer Huelskamp and Nicole MayoContinue Reading Answers to common questions about the FTC’s non-compete ban: What’s next?

On Jan. 5, 2023, the Federal Trade Commission (FTC) announced a slate of proposed rulemaking. Of interest to employers in particular is a proposed rule that would completely ban the use of non-competition or non-compete agreements, which prevent employees from working for a competitor or starting a competing business. Typically, these agreements often last months or years and are limited to a certain geographic scope. The FTC noted that it believes non-compete agreements often have the effect of lowering workers’ wages.Continue Reading FTC announces proposed rule prohibiting non-compete agreements