August.21.2024
The Rule is Blocked Nationwide: On August 20, 2024, the U.S. District Court for the Northern District of Texas in Ryan, LLC v. FTC, granted Plaintiff-Intervenors’ motion for summary judgment, holding that the FTC’s non-compete rule is unlawful, and ordering that the FTC’s non-compete rule shall not take effect on September 4, 2024, or thereafter. Unlike the preliminary injunction, which was specific to the Plaintiff-Intervenors, this ruling prevents the FTC from enforcement the rule against any company nationwide.
What Comes Next?: The FTC may appeal this decision, which not only sets aside the non-compete rule, but also holds that the FTC lacks any substantive rulemaking authority with respect to unfair methods of competition. Any such appeal, however, would be heard by the U.S. Court of Appeals for the Fifth Circuit and possibly the U.S. Supreme Court, both of which have recently issued decisions curtailing the power of federal agencies.
Next Steps for Employers: As a result of this decision, employers may hold off on preparations to comply with the FTC’s rule and should continue to monitor the appellate process in the Ryan case.
For further information regarding the FTC’s rule, see below.
July.25.2024
Decision in ATS Tree Services: On July 23, 2024, the U.S. District Court for the Eastern District of Pennsylvania in ATS Tree Services v. FTC...
The Justice Department has fired back at the Southern Poverty Law Center after it filed an injunction against Acting Attorney General Todd Blanche for saying the group didn’t share information from...