On August 20, 2024, Judge Ada E. Brown for the Northern District of Texas issued a nationwide injunction barring the implementation of the Federal Trade Commission’s (FTC) regulation banning noncompete agreements. In April 2023, the FTC issued a final rule banning most new and existing noncompetes nationwide. Judge Brown’s ruling means the FTC ban will not be enforced or take effect on September 4, 2024, as originally intended. As drafted, the rule would have also required employers to provide notice to current and former employees that their non-competes were void. Under the injunction, this notice is no longer necessary.
We will continue to follow developments and guidance on this Final Rule. Please contact Kathryn Leidahl or your BrownWinick employment attorney with any questions or concerns.
