L-R: Ryan Glasgow, Christopher Pardo and Katherine Sandberg of Hunton Andrews Kurth. Courtesy photos Introduction
In August of this year, a Texas federal court blocked the Federal Trade Commission's Noncompete Rule (16 C.F.R. Section 910.1-6) (Final Rule) on a nationwide basis for all employers. The Final Rule would have banned nearly all noncompetes for most types of workers and was set to go into effect on Sept. 4, 2024. Despite this favorable ruling, the future of the Final Rule is uncertain because of ongoing litigation in other jurisdictions. The Circuit Courts of Appeal and the U.S. Supreme Court may ultimately be asked to weigh in, and the outcome of the upcoming election in November may also have an impact on the Final Rule's fate.FTC Rule Banning Noncompetes Set Aside on Nationwide Basis by Federal Court
"The court also determined that the Final Rule was overbroad," write Ryan Glasgow, Christopher Pardo and Katherine Sandberg of Hunton Andrews Kurth.
September 23, 2024 at 06:00 PM
7 minute read
Employment Law
L-R: Ryan Glasgow, Christopher Pardo and Katherine Sandberg of Hunton Andrews Kurth. Courtesy photos
Introduction
In August of this year, a Texas federal court blocked the Federal Trade Commission's Noncompete Rule (16 C.F.R. Section 910.1-6) (Final Rule) on a nationwide basis for all employers. The Final Rule would have banned nearly all noncompetes for most types of workers and was set to go into effect on Sept. 4, 2024. Despite this favorable ruling, the future of the Final Rule is uncertain because of ongoing litigation in other jurisdictions. The Circuit Courts of Appeal and the U.S. Supreme Court may ultimately be asked to weigh in, and the outcome of the upcoming election in November may also have an impact on the Final Rule's fate.
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