Nearly two months have passed since the FTC approved its new rule banning noncompete agreements, and the ban is set to go into effect in early September 2024. Since then, many articles have analyzed the main effect of the noncompete ban, and explaining how employers should protect their business interests going forward.

The purpose of this article is to take a step back to examine the ongoing litigation surrounding the rule, and—if the ban goes into effect—anticipate future issues that will arise concerning its interpretation and application. 

Will the Ban Even Take Effect?

There is vast uncertainty as to whether the ban will actually go into effect. When the FTC passed the ban, several entities (including various chambers of commerce) predictably filed suit to enjoin it from taking effect in September. Many of these lawsuits were consolidated into the Northern District of Dallas in front of Judge Ada Brown, who was appointed to the federal bench in 2019 by President Donald Trump after serving for six years on the Dallas Court of Appeals. Many more plaintiffs intervened. Brown has permitted substantial briefing from the parties and amicus curae, and stated that she will issue a decision no later than July 3, 2024. The ban will not take effect anytime soon if Brown grants the injunction.