If Non-competes Go the Way of the Dodo—What Is an Employer to Do to Protect the Company?

Source: Nassau Lawyer

As most of us are aware, the Federal Trade Commission’s (“FTC”) proposed ban on non-competition agreements (the “Ban”) was scheduled to go into effect on September 4, 2024. However, on July 3, 2024, the District Court in the Northern District of Texas issued a preliminary injunction staying the proposed rule. On August 20, 2024, the District Court granted summary judgment to plaintiff on the issue, primarily based on a determination that the FTC had exceeded its statutory authority in promulgating the Non-Compete Rule. The effect was to enjoin enforcement of the Ban nationwide. The FTC appealed to the 5th Circuit.

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