July 9, 2024
Last week, the United States District Court for the Northern District of Texas in Ryan LLC v. Federal Trade Commission, issued a preliminary injunction against the Federal Trade Commission’s rule banning non-compete clauses in employment.
Although business groups had hoped for a nationwide preliminary injunction, the court found that the plaintiffs did not sufficiently brief a justification for such broad injunctive relief. In any event, the court stated that it will rule on the ultimate merits of the non-compete ban by no later than August 30, 2024, in advance of the ban’s effective date of September 4, 2024. Based on the court’s opinion supporting its issuance of the preliminary injunction, the court will likely hold that the FTC’s non-compete ban is invalid.
Read more about the court's decision in Murtha Cullina's recent Employment Law Perspectives blog post by Salvatore Gangemi.
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