Texas District Court Enjoins FTC’s Rule Banning Non-Compete Clauses

On July 3, 2024, Judge Ada Brown of the United States District Court for the Northern District of Texas granted the motions for a preliminary injunction-filed by Ryan LLC and several trade associations, including the U.S. Chamber of Commerce-to prevent the FTC's rule banning non-compete clauses from going into effect, but the court's order only applies to the named plaintiffs (i.e., it is not a nationwide injunction). The court has indicated that it will issue a final order on the merits by August 30, 2024, just a few days before the FTC's rule is scheduled to go into effect on September 4. It is possible that Judge Brown enjoins the non-compete ban nationwide in her final order.

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