Judge Ada Brown, left, U.S. District Judge for the Northern District of Texas, and Eugene Scalia of Gibson Dunn. Photos: Diego M. Radzinschi/ALM FTC's Ban on Noncompete Agreements Struck Down on the Eve of Implementation
"This means in essence that, unless a federal appeals court reverses Judge Brown's decision—and we are admittedly only at the end of one phase of the likely three-phase judicial process as appeals are next—the FTC's noncompete rule will not take effect on Sept. 4," employment lawyer Mark S. Goldstein said.
August 21, 2024 at 02:46 PM
5 minute read
The original version of this story was published on Law.com
What You Need to Know
- A ruling by a federal judge in Texas striking down the Federal Trade Commission's ban on noncompete agreements in the workplace has set the stage for a court battle that is likely to end up at the Supreme Court.
- U.S. District Judge Ada E. Brown of the Northern District of Texas ruled that the proposed ban on noncompete agreements is
- The FTC ban was slated to go into effect on Sept. 4.
A ruling by a federal judge in Texas striking down the Federal Trade Commission's ban on noncompete agreements in the workplace has set the stage for a court battle that is likely to end up at the Supreme Court.
The ruling, handed down shortly before the FTC ban was slated to go into effect on Sept. 4, restores the status quo for noncompete clauses, with any current noncompete agreements remaining in effect.
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