Court Blocks FTC Rule Banning Employment Noncompete Agreements on a Limited Basis

Summary

On July 3, 2024, the U.S. District Court for the Northern District of Texas (the Court) issued a memorandum opinion and order that enjoined the U.S. Federal Trade Commission (FTC) from implementing or enforcing its Rule banning noncompete agreements for the vast majority of workers (the Rule) against the plaintiffs in Ryan LLC v. Federal Trade Commission. Although the preliminary injunction applies only to the plaintiffs in the Ryan action, the Court's decision casts serious doubt as to whether the Rule will ever go into effect.