FLEX by Fenwick’s Post

UPDATE ❗ The FTC's rule to federally ban #noncompetes will not go into effect after a Texas federal judge issued a nationwide injunction which barred the implementation of the Final Rule. Read more here 👇

New and Breaking: The FTC’s ban on non-compete agreements has been blocked by a Judge in Texas. As such, the rule will not go into effect on September 4th. In reaching his decision, Judge Brown concluded that that the FTC “exceeded its statutory authority” in making the rule, which the judge called “arbitrary and capricious.” The judge also concluded that the rule would cause irreparable harm. For information on how this may affect your business, please contact us. #noncompete #businessdecisions

Earlier today, a federal judge in the Northern District of Texas set aside the FTC's Non-Compete Rule, which was supposed to be implemented on September 4, 2024. The FTC's nationwide ban on noncompete agreements was barred based on a finding that it lacked authority to issue such a broad rule. Unless overturned on appeal, this ruling allows employers to maintain, and if necessary enforce, restrictive covenants to protect critical trade secrets and human capital. #FTC #NonCompete #BusinessNews

On July 3, in a preliminary injunction only applying to the parties in the lawsuit filed by Ryan LLC, the US District Court for the Northern District of Texas postponed the effective date of the FTC's Final Rule that bans all new noncompete agreements nationwide and renders existing noncompete agreements binding most workers unenforceable. Read more about what this means and what comes next in this On the Subject: https://lnkd.in/ewugUumi

FTC’s Non-Compete Ban Stricken Nationwide Yesterday the federal court in Dallas, Texas struck down the FTC’s proposed ban on non-competition agreements nationwide. The ban was scheduled to go into effect on Sept 4th. This decision provides relief to employers nationwide, allowing them to continue using non-competes in line with state laws. Following a lawsuit by a Texas employer, the U.S. Chamber of Commerce, and other business organizations, the FTC's non-compete rule, scheduled to take effect on September 4, has been halted. While there's a possibility of future legal challenges, yesterday's ruling ensures that compliance with the rule by the September deadline is no longer required. #FTC #NonCompete #LegalUpdate #EmploymentLaw #BusinessNews

Below please see my colleagues summary of the current status of legal challenges and appeals regarding the FTC rule banning non-competes, including the FTC's recent appeal to the Fifth Circuit Court of Appeals.

On July 3, in a preliminary injunction only applying to the parties in the lawsuit filed by Ryan LLC, the US District Court for the Northern District of Texas postponed the effective date of the FTC's Final Rule that bans all new noncompete agreements nationwide and renders existing noncompete agreements binding most workers unenforceable. Read more about what this means and what comes next in this On the Subject: https://lnkd.in/gReiJM_B

On July 3, in a preliminary injunction only applying to the parties in the lawsuit filed by Ryan LLC, the US District Court for the Northern District of Texas postponed the effective date of the FTC's Final Rule that bans all new noncompete agreements nationwide and renders existing noncompete agreements binding most workers unenforceable. Read more about what this means and what comes next in this On the Subject: https://lnkd.in/efCzhV8K

In our latest post, Dawn Mertineit covers the most recent update on Maine and its non-compete ban proposal. Governor Mills vetoed the bill today, while the FTC's impending rule adds intrigue to this legal saga. Read more about the veto and what this implies. #EmploymentLaw #NonCompete #MaineLegislation 

On July 3, in a preliminary injunction only applying to the parties in the lawsuit filed by Ryan LLC, the US District Court for the Northern District of Texas postponed the effective date of the FTC's Final Rule that bans all new noncompete agreements nationwide and renders existing noncompete agreements binding most workers unenforceable. Read more about what this means and what comes next in this On the Subject: https://lnkd.in/gAwd87aD