Buckingham, Doolittle & Burroughs, LLC’s Post

“However, the Court did not go so far as to issue a nationwide preliminary injunction or nationwide stay of the effective date of the Rule. Rather, the Court only stayed the effective date of the Rule – which was supposed to be Sept. 4 – and prohibited the FTC from enforcing the Rule against the specific plaintiffs in the case before it. The Court intends to issue a final ruling on the validity of the Rule on or before Aug. 30.” #FTC #Noncompetes #APA #AdministrativeLaw #EmploymentLaw

Update for those following on the FTC noncompete ban. In a significant decision, a Texas federal judge has struck down the Federal Trade Commission’s ban on noncompete agreements in employment contracts, citing violations of the Administrative Procedure Act and exceeding the agency’s authority. This ruling, issued by Judge Ada Brown, applies nationwide and sets aside the regulation that was set to take effect on Sept. 4. This decision diverges from other recent rulings, including a Pennsylvania federal judge who sided with the FTC and a Florida judge who issued a limited injunction against the ban. For more details, check the the HR Dive article here:

BREAKING - FTC'S NON-COMPETE BAN BLOCKED: A Texas federal judge on Tuesday permanently blocked the Federal Trade Commission's looming ban on noncompete agreements in employment contracts, setting aside the regulation with a conclusion that it's beyond the agency's authority. #NONCOMPETEAGREEMENTS #NonCompete #Agreements #jobs #employment #tradesecrets #blocked #federalJudge #order #AuthorityofFTC

Yesterday, a federal court in Texas issued a permanent nationwide injunction barring the Federal Trade Commission’s Non-Compete Agreement Ban from going into effect. What does this mean for employers? Find out in our latest blog post, authored by Shipman & Goodwin LLP attorneys Daniel Schwartz and Keegan Drenosky.   🌐 https://lnkd.in/e5MvzT8B    #EmploymentLaw #BlogPost #NonCompeteAgreements #LegalUpdate

It’s in the nature of bureaucracies to inexorably expand their size and power. Fortunately, the Constitution stands in their way. If this is a matter in which the federal government has the power to act under the Commerce Clause, our elected Congress must act — not appointed bureaucrats from the Executive Branch. "In sum, the Court concludes that the FTC lacks statutory authority to promulgate the Non-Compete Rule, and that the Rule is arbitrary and capricious. Thus, the FTC's promulgation of the Rule is an unlawful agency action," Judge Brown said. #noncompete #ftc #federaltradecommission #separationofpowers #usconstitution #constitutionallaw #administrativelaw #federalcourt

🚨 **Important Update: FTC Ruling on Non-Compete Agreements** On September 4, 2024, a significant change is set to impact businesses nationwide. By a narrow vote of 3-2, the Federal Trade Commission (FTC) has voted to effectively outlaw non-compete agreements across the United States. However, there is a pending legal challenge that could affect this ruling. A lawsuit has been filed in the U.S. District Court for the Northern District of Texas - Dallas Division by Ryan LLC, the U.S. Chamber of Commerce, the Texas Association of Business, and other entities. These organizations are challenging the FTC's decision and have sought an injunction to prevent the ruling from taking effect. The injunction issue has been fully briefed, and Judge Brown is expected to issue a decision by July 3, 2024. This decision will determine whether the FTC's ruling stands or if it will be halted. Do you think this FTC ruling will be struck down? #FTC #NonCompete #BusinessLaw #EmployeeRetention #LegalUpdate #HR #BusinessOwners

New FTC rule invites immediate court challenge with big swing to invalidate most non-competition clauses in the United States. Learn more from DWT's Jeremy Merkelson, Roy Salins, Michael Rella, Gerald Stein, and Caleah Whitten:

For now, employers who use noncompetes can breathe a temporary sigh of relief. Attorneys Daniel Levy and Carolyn Boucek explore the implications of a Texas court's ruling setting aside the FTC's forthcoming noncompete ban nationwide. #NonCompetes EmploymentLaw #HumanResources

👨⚖️ A Texas federal judge ruled that organizations suing to block the FTC Rule banning non-compete agreements nationwide will not have to comply with the rule until the litigation is resolved. 📺 Watch our video https://lnkd.in/dEy4iZjm to learn what this means for your business. 🆘 If you need help updating your noncompete and non-solicitation agreements in light of the FTC Rule and the NLRB’s actions, give us a call at 973.787.8442. #FTC #noncompete #nonsolicitation #hr #employers #gettingyoubacktobusiness #smallbusinessowners #Newjersey #Newyork #noncompeteagreements #nonsolicitationagreements #NLRB

While this ruling prevents the FTC’s proposed ban from taking effect, it does not mean that non-competes are no longer under scrutiny. State legislators across the country have been tightening restrictions or imposing outright bans (ahem, Minnesota) on non-compete agreements over the past few years. Be sure to check out our related article, which provides a full run down of these changes, their implications, and what they mean for your business: https://lnkd.in/gKnPiEDt