FTC appeals Texas Federal Court’s decision to halt its noncompete ban nationally
On 18 October 2024, the Federal Trade Commission (FTC) gave notice that it was appealing a Texas federal judge’s decision to stop its non-compete regulation (the “Rule”) taking effect for all employers in the United States. The appeal sets up a decision from the conservative Fifth Circuit which has become the key battleground in challenges to federal regulations. In August, in Ryan LLC. Federal Trade Commission No. 3:24-cv-00986-E (N.D.Tex. The United States District Court for the Northern District of Texas injuncted the rule’s nationwide enforcement, preventing its implementation as intended on September 4, 2020. The court found the FTC did not have the authority to issue the Rule, under the FTC Act. It also found that the Rule’s near-complete ban of noncompetes was arbitrary and arbitrarily applied.
On the same grounds, the Florida federal courts in Properties of the Villages Inc. The Florida federal court in Properties of the Villages Inc. v. Federal Trade Commission, No. The FTC also appealed to the Eleventh Circuit the Florida court’s ruling. The Eleventh Circuit set a deadline of November 4, 2024 for the FTC to submit its brief in support of their appeal. Ryan LLC’s response is due 30 days after that date. We will keep you apprised of any developments.
