FTC Rule Prohibiting Non-Compete Agreements Set Aside by Texas Court
Dinsmore & Shohl LLP, August 2024
On August 20, 2024, a judge in the United States District Court for the Northern District of Texas entered an order prohibiting the Federal Trade Commission (FTC) from implementing a new rule that would have prohibited employers from enforcing non-compete agreements for the vast majority of employees in the United States as of September 4, 2024 (see our prior analysis of that rule here.) In its ruling, the district court determined that the FTC lacked the statutory authority to create substantive rules regulating unfair methods of competition, which was the Commission’s cited basis for its rule prohibiting non-competes...
