Texas Federal Court Rules FTC Noncompete Ban Exceeds FTC Authority to Adopt and Enjoins FTC Enforcement Nationwide
The United States District Court for the Northern District of Texas has ruled in Ryan LLC v. Federal Trade Commission that the Federal Trade Commission (FTC) rule banning noncompete agreements that was scheduled to take effect on September 4, 2024, exceeds the authority of the FTC to adopt and is enjoined from being enforced nationwide. While the FTC indicated that it may appeal the court decision, the rule banning noncompete agreements will not take effect as scheduled and is enjoined from any enforcement by the FTC at this time. The complete court opinion in Ryan LLC v. Federal Trade Commission can be read here: Texas Court Opinion in FTC Noncompete Rule Case. The final court judgment in Ryan LLC v. Federal Trade Commission can be read here: Texas Final FTC Court Judgment.
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