Our Firm previously prepared a Video Legal Briefing regarding the Federal Trade Commission’s Non-Compete Rule, which makes most non-compete agreements in the United States unenforceable. Here is a link to our previous Briefing:
This new rulemaking has an effective date of September 4, 2024. Shortly after the rule was published, litigation was commenced and a decision was just rendered in early July, 2024 by the United States District Court for the Northern District of Texas in the case of Ryan LLC (and the Chamber of Commerce of the United States of America, Business Roundtable, Texas Association of Business, and Longview Chamber of Commerce) v. Federal Trade Commission.
The Court in this matter granted the Plaintiff’s motion for a preliminary injunction and postponed the effective date of the new rule, but only as applied to the specific Plaintiffs who commenced the case. The court noted in its decision that “the text, structure, and history of the FTC Act reveal that the FTC lacks substantive rulemaking authority with respect to unfair methods of competition under Section 6(g).” Here is a link to the full decision/order:
While this decision is preliminary and only applies to the specific Plaintiffs in this matter at this point, the Court also stated that it intends to rule on the ultimate merits of the new rule on or before August 30, 2024.
Our Firm is tracking developments in this matter as any decision will likely have a significant impact on businesses across the country.
Our firm has extensive experience counseling individuals, businesses, and others on statutory and regulatory requirements, as well as preparing and implementing applicable policies. If you have any questions related to this Legal Briefing, please contact any member of our firm at 585-730- 4773.
This Legal Briefing is intended for general informational and educational purposes only and should not be considered legal advice or counsel. The substance of this Legal Briefing is not intended to cover all legal issues or developments regarding the matter. Please consult with an attorney to ascertain how these new developments may relate to you or your business. © 2024 Law Offices of Pullano & Farrow PLLC
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