In our previous post from July 2024, we informed our clients about the FTC’s impending ban on non-compete agreements, which was scheduled to take effect on September 4, 2024. Since then, a significant legal development has halted the rule from going into effect.

On August 20, 2024, the U.S. District Court for the Northern District of Texas ruled in Ryan, LLC v. FTC that the FTC lacked the statutory authority to implement this nationwide ban. This ruling has stopped the FTC from enforcing the non-compete rule, which would have required employers to invalidate most existing agreements and notify workers accordingly. The FTC now has until October 19, 2024, to appeal this decision, and it is currently considering its options​.

At BridgehouseLaw, we are closely monitoring this evolving situation. While the future of the FTC’s rule remains uncertain, it is essential for businesses to stay aware of ongoing legal proceedings and state-specific non-compete regulations. Should the FTC choose to appeal or other rulings emerge, we will provide further updates to ensure that our clients remain compliant and informed.

Stay tuned for more updates as we continue to track this case. If you have any questions about how this ruling may potentially impact your current agreements or would like to assess your existing contracts under state laws, please reach out to our team. We are here to assist you every step of the way.