TBA Law Blog


Posted by: Julia Wilburn on Jul 5, 2024

U.S. District Judge Ada Brown in Dallas has delayed implementation of the U.S. Federal Trade Commission’s (FTC) near-total ban on noncompete agreements. Bloomberg Law reports that the ban was set to take effect nationwide Sept. 4, and it will now be on hold until August for the groups that seek to permanently strike the rule from the books, while the judge considers the merits of their suit. The groups warned the new rule would invalidate 30 million employment contracts in a move that “amounts to a vast overhaul of the national economy.” The FTC argues it has full authority to issue the rule, but Brown said in her ruling Wednesday that the challenge to the measure is “likely to succeed on the merits,” and that the public interest weighed in favor of temporarily blocking the rule.