A Texas federal district court orders no enforcement of FTC Non-Compete Rule
On August 20, 2024, a United States District Court in Texas ordered that the Federal Trade Commission’s rule for banning non-competition agreements must be set aside. In reaching this ruling, the court stated that the Federal Trade Commission Act does not authorize the FTC to engage in such “substantive” rule making and it exceeded its authority when issuing this rule. While this decision may be appealed by the FTC, the effect of the Texas court’s ruling is that the FTC rule that was slated to go into effect on September 4, 2024 is unenforceable unless a higher court overturns the Texas court’s decision.
If you have questions regarding employee agreements, and non-competition agreements, please contact Maureen Pomeroy at Pomeroy Law P.C. 978-358-7550, or info@pomeroy-law.com.
