As noted previously by AHCA/NCAL, on April 23, 2024, the Federal Trade Commission’s (FTC’s) Final Non-Compete Rule was released and goes into effect 120 days after publication in the Federal Register (effective September 4, 2024). The rule will make nearly all preexisting and future U.S. non-compete agreements with workers unenforceable, with the exception of preexisting non-compete agreements with “senior executives.”
On July 3, 2024, the U.S. District Court for the Northern District of Texas enjoined the FTC from enforcing its noncompete ban against the plaintiff and plaintiff-intervenors in the Ryan lawsuit. It stayed the noncompete ban to those parties but did not issue a nationwide injunction or stay that would apply to other employers. Ryan LLC, a national tax preparation service, filed suit challenging the FTC’s noncompete ban shortly after it was issued. You can see the July 3rd court opinion here.
This means that for now, the noncompete ban remains scheduled to take effect on September 4, 2024, with respect to all covered employers other than the plaintiff and plaintiff-intervenors in the Ryan lawsuit.