On Wednesday, July 3, 2024, a federal judge in Texas blocked the Federal Trade Commission’s rule that seeks an almost complete ban of non-compete agreements. In her ruling, Judge Ada Brown of the United States District Court for the Northern District of Texas granted the plaintiffs Motion for a Preliminary Injunction, delaying the effective date
On Tuesday, the Federal Trade Commission (“FTC”) issued its long-awaited final rule regarding non-compete agreements. The FTC determined that non-compete agreements are an unfair method of competition and, therefore, a violation of the FTC Act. Once the rule is effective, employers may not enter new non-compete agreements with employees or enforce existing non-compete agreements against
On January 5, 2023, the Federal Trade Commission (“FTC”) proposed a rule banning provisions in employment agreements which prevent employees and independent contractors, for a period of time, from working for a competitor or starting a competing business. The FTC will accept public comments on the proposal for 60 days and consider those comments prior
Non-compete agreements have recently become a popular focus of the federal and state governments. Several weeks ago, President Biden issued an Executive Order, “Promoting Competition in the American Economy” which asked the Federal Trade Commission (“FTC”) to exercise the FTC’s statutory rulemaking authority to curtail the unfair use of non-compete agreements and other