U.S. District Judges Ada Brown, of the Northern District of Texas, left, and Kelley Brisbon Hodge, of the Eastern District of Pennsylvania, right. Photos: Diego M. Radzinschi/ALM Things Could Get Confusing After Dueling Rulings on Noncompetes
"Come September, if this situation persists, there will be garden-variety, noncompete employment cases in courts across the country where defendants, whether employees switching companies or companies hiring employees in the face of noncompetes from their prior job, will likely assert that the FTC is a defense to the enforcement of a noncompete," attorney John Siegal said.
July 24, 2024 at 03:37 PM
6 minute read
A Pennsylvania federal judge's ruling—denying a preliminary injunction in a suit challenging the Federal Trade Commission's ban on employment noncompete clauses—is most notable for how different it is from the position a Texas federal judge, who was hearing a similar case, took in a July 3 ruling.
Observers said the contrasting rulings on the noncompete issue could generate a circuit split, which could send the case right to the U.S. Supreme Court.
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