This week, a United States District Court in Texas issued a nationwide injunction prohibiting the Federal Trade Commission ("FTC") from enforcing its recent rule banning employment noncompete agreements ("FTC Noncompete Rule") which was set to take effect on September 4, 2024. The court in Ryan v. FTC held that the FTC acted beyond its rulemaking authority and ruled that the FTC Noncompete Rule shall not be enforced or otherwise take effect on September 4.
As SCE Law previously noted in an earlier LawView® Newsletter (FTC Bans Employment Noncompetes), the FTC Noncompete Rule would have required employers that have active noncompete agreements with their workers to notify such workers that the employer will not enforce such noncompete agreements. As a result of the federal court’s nationwide injunction, employers now will not have to send such notices or otherwise comply with the FTC Noncompete Rule. SCE Law will continue to monitor the FTC Noncompete Rule and developments in the case, including any appeal by the FTC of the court’s nationwide injunction.
If you have any questions regarding the FTC Noncompete Rule, the recent court decision, or any other business and employment law questions, please contact SCE Law online or call 404-352-1465 extension 441.
Stokes Carmichael & Ernst LLP ("SCE Law") has represented businesses in employment law – as well as in business law, commercial law and collections, and general civil litigation – for over 52 years. SCE Law has been honored as one of "The Best Law Firms in America®" by Best Lawyers® and is rated by “AV® Preeminent®” by Martindale-Hubbell® (the highest rating given by the legal industry’s premier peer-review rating system), reflecting “Preeminent” legal ability and “Very High” general ethical standards.
