Judge Blocks Noncompetes Ban from Taking Effect The Federal Trade Commission’s (FTC) blanket ban on noncompete agreements has been blocked before it was set to take effect on Sept. 4. Judge Ada Brown of the U.S. District Court for the Northern District of Texas ruled against the noncompetes ban on Tuesday, Aug. 20. In her opinion, Brown wrote that the FTC had overstepped its authority. “The commission’s lack of evidence as to why they chose to impose such a sweeping prohibition — that prohibits entering or enforcing virtually all non-competes — instead of targeting specific, harmful non-competes, renders the rule arbitrary and capricious.” https://ow.ly/HLFt50T8TiP
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‼️ On August 20, 2024, federal judge Ada Brown issued a nationwide ban blocking the implementation of the Federal Trade Commission’s noncompete ban. This means the noncompete ban will not go into effect on September 4, 2024 and all existing noncompetes are still valid. Would love to know your thoughts in the comments.
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Last week, a Texas court granted an injunction temporarily stopping the non-compete ban as to certain organizations. While we wait on the final ruling from the court by August 30th, the courts in Florida and Pennsylvania are also posed to rule on the validity of the ban, further complicating the current situation. Here are the important deadlines to follow: July 23, 2024 - The Eastern District of Pennsylvania will rule on the motion for preliminary injunction against the ban. July 25, 2024 - FTC must file its response to the motion for preliminary injunction in the Middle District of Florida in Properties of the Villages, Inc. v. FTC. August 30, 2024 - The Northern District of Texas will issue a final ruling on the merits in Ryan, LLC v. FTC. September 4, 2024 - the non-compete ban is scheduled to go into effect.
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Has your non-compete been violated? The #FTC voted to ban #noncompetes nationwide, but the rule is not yet enforceable. The ban is expected to go into effect on September 4, 2024. However, legal challenges have already been filed that may further delay its implementation. Until then state law prevails and non-competes remain enforceable in Texas. To enforce a Texas non-compete agreement, first seek a temporary restraining order to stop the prohibited activity. Texas attorney Trey Hendershot explains what's next. If you suspect an employee or former employee is violating their non-compete agreement, act quickly to preserve your rights.
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⏳ Time is ticking to comply with the FTC’s noncompete ban, effective September 4. How is your business preparing? Fenwick’s Matthew Damm and Mimi Nguyen discuss compliance strategies in their latest alert: https://lnkd.in/eMF3nNZ4 #FTC #employmentlaw #noncompete
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The FTC’s near-total ban on non-competes was scheduled to take effect on September 4, 2024. With just weeks to go, a federal court in Texas has set aside the rule and ordered that it will not take effect at all. The case is now likely headed for appeal. In this Client Alert, Erika Todd and Ryan Rosenblatt discuss the practical results of this ruling and possible upcoming legal developments. To read the full alert, click here: https://lnkd.in/gJuwU7Tg #WhatsYourNext
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Important compliance strategies for the coming changes to the U.S. non-compete landscape from the Fenwick employment litigation group.
⏳ Time is ticking to comply with the FTC’s noncompete ban, effective September 4. How is your business preparing? Fenwick’s Matthew Damm and Mimi Nguyen discuss compliance strategies in their latest alert: https://lnkd.in/eMF3nNZ4 #FTC #employmentlaw #noncompete
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NEW ARTICLE ALERT: FTC’s Ban on Noncompete Agreements Struck Down On August 20, 2024, the U.S. District Court for the Northern District of Texas struck down the FTC’s proposed ban on noncompete agreements, ruling that the FTC lacked the authority to enforce the ban. As a result, the ban, which was set to take effect on September 4, 2024, will not be implemented. Read the full article for all the details and what to expect next: https://lnkd.in/eTx9avcr #Noncompete #FTC #LegalUpdate #EmploymentLaw #ObermanLawFirm #LegalInsights
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Earlier today, a federal judge in the Northern District of Texas set aside the FTC's Non-Compete Rule, which was supposed to be implemented on September 4, 2024. The FTC's nationwide ban on noncompete agreements was barred based on a finding that it lacked authority to issue such a broad rule. Unless overturned on appeal, this ruling allows employers to maintain, and if necessary enforce, restrictive covenants to protect critical trade secrets and human capital. #FTC #NonCompete #BusinessNews
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FTC Non-Compete Ban Update: Many clients are asking about the current status of the FTC’s nationwide ban on most non-compete agreements. The ban, initially set to take effect on September 4, 2024, has faced multiple court challenges that are still ongoing. As of now, the ban has not gone into effect, and its future remains uncertain. For more details and general recommendations read the latest alert from Garfunkel Wild’s Sal Puccio, Jack Kealey, Kimberly Kempton-Serra, and Vanessa Giunta here: https://lnkd.in/gj-aCEG3. #FTC #NonCompete #LegalUpdate #BusinessLaw #EmploymentLaw
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A federal judge in Texas blocked the FTC's noncompete ban in a ruling yesterday, stating the FTC does not have the authority to ban the practice through broad rules. According to an FTC spokesperson, the agency is considering appealing the ruling. The nationwide ban on virtually all noncompetes was set to go into effect on September 4 before being blocked by this ruling. SDPA will continue to monitor this ruling and notify our members of any further major developments related to this FTC rule. To read our original comments on the noncompete ban, visit https://ow.ly/Petb50T3isk. #SDPA #DermPAs #DermPAsforDermPAs
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