FTC Rule Banning Non-Competes Held to Be Unlawful Agency Action and Set Aside
On August 20, 2024, the U.S. District Court for the Northern District of Texas granted summary judgment in favor of the plaintiff and the plaintiff-intervenors in the case of Ryan, LLC v. Federal Trade Commission, challenging the Federal Trade Commission’s (FTC) ban on post-employment non-compete agreements (Non-Compete Rule). The court concluded that the FTC lacked statutory authority to promulgate the Non-Compete Rule, and that the Non-Compete Rule is arbitrary and capricious. Accordingly, the court set aside the Non-Compete Rule and ordered that it will not be enforceable or take effect on its original effective date of September 4, 2024 or thereafter.
Vedder Thinking | Articles FTC Rule Banning Non-Competes Held to Be Unlawful Agency Action and Set Aside
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August 29, 2024
On August 20, 2024, the U.S. District Court for the Northern District of Texas granted summary judgment in favor of the plaintiff and the plaintiff-intervenors in the case of Ryan, LLC v. Federal Trade Commission, challenging the Federal Trade Commission’s (FTC) ban on post-employment non-compete agreements (Non-Compete Rule). The court concluded that the FTC lacked statutory authority to promulgate the Non-Compete Rule, and that the Non-Compete Rule is arbitrary and capricious. Accordingly, the court set aside the Non-Compete Rule and ordered that it will not be enforceable or take effect on its original effective date of September 4, 2024 or thereafter.
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