The long awaited collision between the Federal Trade Commission (FTC) and the varied political and legal opinions on the legality of Employment Non-Compete Agreements (Non-Competes) is now moving up the ladder of jurisprudence in the Federal Courts. It is also being reviewed in State Legislative bodies. There will undoubtedly be circuit court conflicts and a likely need one day for a Supreme Court ruling. In a huge ruling this week, a Texas Federal Court has now issued a nationwide injunction against the near complete ban on Non-Competes imposed by the FTC. This will have major implications in the world of employment law and trade secret/IP law, and will create uncertainty in the corporate sector which is already struggling with lots of litigation relative to employment restrictive covenants, trade secret misappropriation under the DTSA, and the corporate struggle to protect proprietary information and human talent from employee departures and from a host of malicious actors on the internet. See the FTC Ban on Non-Competes here at 16.C.F.R.§ 910.1–.6
While it is hard to pick winners and losers from this Texas ruling, one could assume that many businesses across the nation are cheering what appears to be a major court victory for businesses. The United States District Court for the Northern District of Texas has struck down the Federal Trade Commission’s (FTC) controversial and recently enacted...
WASHINGTON, D.C., DC, UNITED STATES, May 6, 2026 /EINPresswire.com/ -- Brown, LLC, a nationally recognized whistleblower law firm and leader in False Claims Act (FCA) litigation, today announced t...