Trading Secrets’ Post

Noncompete ban case: What can we learn from the Texas court's denial of the plaintiffs' motion for reconsideration? Attorney Daniel Levy and Summer Associate Gianna Dano look for insights on the upcoming merits disposition. #Noncompetes #TradeSecrets #EmploymentLaw

Not a big surprise, but today a federal court in Texas partially blocked the FTC’s ban on noncompete agreements that was set to take effect September 4. Opinion attached. The court ruled that the FTC lacks substantive rulemaking authority with respect to unfair methods of competition under Section 6(g) of the FTC Act. Essentially, the FTC has some authority to promulgate rules to preclude unfair methods of competition but lacks the authority to create substantive rules under Section 6(g).  Interesting part of the opinion is the discussion of the power of district courts to issue a nationwide injunction. The court declined to issue nationwide relief, and instead limited its injunction to the named plaintiff and the Chamber of Commerce (and similar entities) but not the members of those entities. More to come obviously from this case and other similar cases pending elsewhere. #noncompetes

The U.S. Chamber of Commerce and Ryan, LLC have achieved a significant milestone by obtaining a limited preliminary injunction, halting the application of the FTC ban on non-competes effective September 4, 2024. But that’s not all - they’re now seeking to expand the injunction even further. Dive deep into the analysis by Michael Wexler, Jesse Coleman, Dawn Mertineit, Daniel Hart, and Katherine Perrelli on the Seyfarth Shaw LLP Trade Secrets Law Blog to understand the implications and explore expert insights. #TradeSecrets #NonCompete #LegalAnalysis #FTC #USChamber #SeyfarthLegal

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

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

On July 3, the U.S. District Court for the Eastern District of Texas in Ryan, LLC v. FTC, issued a preliminary injunction staying the effective date of the FTC’s non-compete rule against the one plaintiff and four plaintiff-intervenors in that case. Check out my thoughts on the decision, and what it means for employers, below! #FTC #NonCompeteBan #FTCRule #NonCompete #BusinessLaw #EmploymentLaw #LegalUpdate #OffitKurman

Legal Update: A federal court in Texas has temporarily blocked the FTC's ban on non-compete agreements, granting a preliminary injunction. The ruling, effective for named plaintiffs, questions the FTC's authority and marks a significant legal development. Learn more by reading Sarah Goodman and Charles "Max" McCauley III's latest legal insights here: https://lnkd.in/etnQngMZ ** ** #FTC #NonCompeteBan #FTCRule #NonCompete #BusinessLaw #EmploymentLaw #LegalUpdate #OffitKurman

A federal court in Pennsylvania decided yesterday that a new rule banning non-competes will be allowed to go into effect later this year. This decision runs contrary to an earlier Texas decision that temporarily blocks the non-compete ban from going into effect for the parties in that case. This article I put together with Stephen DiTullio summarizes the latest developments.

In a surprising turn, United States District Judge for the Eastern District of Pennsylvania, Judge Kelley Hodge, denied ATS Tree Services, LLC's Motion for Stay of Effective Date and Preliminary Injunction. Judge Kelley's ruling follows the July 3, 2024 decision out of the Northern District of Texas in Ryan, LLC v. FTC, in which Judge Brown granted Ryan, LLC's Motion for Stay of Effective Date and Preliminary Injunction and held that the FTC abused its rulemaking authority effectively blocking the rule from taking effect. However, the Ryan, LLC decision was limited to only the plaintiffs in the Ryan, LLC case; it did not impact the FTC's ability to enforce the rule against non-parties. In layman's terms, Judge Hodge's ruling means the FTC's final rule, largely banning non-competes, will take effect on September 4, 2024, unless an appellate court overturns it or another court issues a nationwide injunction before September 4th. The screenwriters of 2024 keep the hits coming. Stay tuned for more updates! #noncompete #FTC #employment #humanresources

📰 Update: The U.S. Chamber of Commerce, et. al., have initiated a lawsuit against the #FTC and Chair Lina Khan in Tyler, Texas. This follows their filing of a motion for a preliminary injunction and a stay on the enforcement of the FTC's new rule banning #noncompete clauses. The FTC responded by requesting a one-week extension to prepare their opposition, which has been conditionally accepted by the plaintiffs, extending their reply deadline by five additional days. Anticipated Timeline: The FTC's opposition to the Chamber’s motion is due May 15, with the Chamber’s reply set for May 28. An upcoming hearing on this matter is expected in early June. Stay tuned for further updates... #noncompetes #employmentlaw #legalupdates #smallbusiness