DBL Law’s Post

The Federal Trade Commission’s rule banning most non-compete agreements has hit its first major legal obstacle. A Texas federal court issued a preliminary injunction, partially blocking the federal ban scheduled to take effect in September.   While the injunction only applies to the litigation parties, the judge's strongly-worded 33-page opinion is a first major signal that the FTC rule may not pass judicial review.   Adams and Reese attorneys Timothy Brinks, Matt Jackson, Hunter Schoen, and Evan Gaudet discuss the Texas case and the likelihood of further legal challenges. Read more >> https://lnkd.in/gtnD-y6d #EmploymentAgreements #FTC #FinalRule #NonCompeteAgreements #Employers #LaborLaw #ConfidentialityAgreements

FTC Non-Compete Rule Declared Null and Void by Federal Court The U.S. District Court for the Northern District of Texas has ruled against the FTC’s broad non-compete rule, which was set to take effect on September 4, 2024. The court found that the FTC exceeded its authority and declared the rule "arbitrary and capricious." What does this mean? 1. The FTC’s non-compete rule has been nullified and will not take effect. 2. Employers are not required to rescind existing non-compete agreements or notify employees about the rule. 3. This ruling has a nationwide impact—the rule is unenforceable across the U.S. Unless overturned on appeal, this is the rule of law. #LegalUpdate #FTC #NonCompete #EmploymentLaw #BusinessLaw #MZLS

🚨 The battle over the FTC's Non-Compete Ban continues‼️ The Federal Trade Commission recently appealed a Texas federal judge's decision against it. ✅✅✅ Check out the video below ⬇️⬇️⬇️ from Michael Elkins for all of the details‼️ #law #employmentlaw #hr

🚨 FTC Non-Compete Rule Update: Courts Split! 🚨 This April, the FTC announced a rule banning most non-compete agreements, scheduled to take effect on September 4. However, courts are divided: a Texas court halted the rule, while a Pennsylvania court backed it. With September just around the corner, we could see this head to the Supreme Court. I’ll keep you updated as this unfolds! #LegalUpdate #NonCompete #FTC #EmploymentLaw #StayTuned

🚨 Legal Alert: A Texas court's preliminary injunction raises questions about the FTC's latest noncompete rule. What does this mean for future enforcement? Find out more in our legal alert. #NoncompeteAgreements #EmploymentLaw #FTC

Thanks to Law360 for publishing my article about the Federal Trade Commission's ban of non-competes and how employers and attorneys should prepare for it. #ftc #employmentlaw #executive #noncompete #employmentcontract https://lnkd.in/eY9YJqwV

July 3, 2024-- A Dallas, Texas federal court Judge entered an injunction against the Federal Trade Commission from enforcing its 2024 rule that most non-compete agreements are unenforceable. The Judge found that the FTC lacks substantive rulemaking authority specify what are methods of "unfair competition". Litigation over the FTC's authority was anticipated. What are clients are also anticipating and experiencing is that employees an business partners, as well as courts, are scrutinizing non-compete and non-solicitation agreements. We are working with a number of these clients to review existing agreements for reasonableness and enforceability in this rapidly-evolving atmosphere. Restrictive covenants remain effective tools to protect project legitimate proprietary business interests. As the Texas Judge stated, "granting injunctive relief [to halt the FTC's non-compete ban] serves the public interest...." #noncompeteagreements #employmentlaw #restrictivecovenants

🚨 Federal Courts Split on FTC's Non-Compete Ban: A Tale of Two Districts In a developing legal saga, two federal courts have issued conflicting rulings on the FTC's new rule banning most non-compete agreements, set to take effect September 4, 2024. Judge Kelley B. Hodge of the Eastern District of Pennsylvania denied a motion to block the FTC rule, rejecting arguments that the FTC lacks authority and finding no evidence of irreparable harm to businesses. However, in a contrasting decision, Judge Ada Brown of the Northern District of Texas ruled that the FTC lacks substantive rulemaking authority in this area. Judge Brown issued a limited preliminary injunction against the rule in Ryan LLC v. Federal Trade Commission, applying only to the four plaintiffs in that case. The Plot Thickens: 🕰️ Countdown to Clarity: Judge Brown's final ruling expected by August 30 🔮 Crystal Ball Needed: Future of non-competes hangs in legal limbo 🏋️♀️ Employers' Balancing Act: Prepare for change while navigating uncertainty 🎭 Supreme Court Stage? This judicial drama may be heading for a grand finale This stark divide between federal courts sets the stage for a potential Supreme Court showdown on the FTC's authority and the future of non-compete agreements in the U.S. #EmploymentLaw #NonCompete #FTCRuling #LegalDrama

New article alert! The FTC’s Final Rule bans most post-employment non-compete agreements. Practice owners should note key provisions and recent legal challenges, including a partial block by a federal court in Texas. Stay informed as the situation evolves and legal challenges proceed. Read the full article by visiting https://lnkd.in/e2cDaVWF. #obermanlaw #FTC #finalrule #noncompete

New article alert! The FTC’s Final Rule bans most post-employment non-compete agreements. Practice owners should note key provisions and recent legal challenges, including a partial block by a federal court in Texas. Stay informed as the situation evolves and legal challenges proceed. Read the full article by visiting https://lnkd.in/eTaAzXiR. #obermanlaw #FTC #finalrule #noncompete