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RKJ BLOG: See our follow up blog on the new FTC non-compete rule that discusses the legal challenges that have been brought against the FTC’s new rule https://lnkd.in/eVAa2WCJ

The U.S. District Court for the Northern District of Texas issued a preliminary injunction against the Federal Trade Commission's Final Rule banning most non-compete agreements. The stay currently applies only to the parties involved in the case and the FTC's rule is still set to go into effect unless further court decisions alter the timeline. Click the link below to learn more about the injunction and how the FTC Final Rule banning non-competes affects you and your business. https://lnkd.in/e56tU9-q This update was written by JAH partners Patrick E. Kelly & David E. Stevens #noncompete #ftc #employmentlaw #jahlaw

Bob Hoffer breaks down the implications of a recent ruling from the U.S. District Court for the Northern District of Texas putting a temporary hold on the Federal Trade Commission’s (FTC) ban on noncompetes, originally set to take effect on September 4, 2024. Stay informed on how this ruling, and the evolving legal landscape, could impact businesses and employees alike. 🔗 https://lnkd.in/gz5Wfxhw #EmploymentLaw #NoncompeteAgreements #DBLLaw #LegalInsights

Not a big surprise, but today a federal court in Texas partially blocked the FTC’s ban on noncompete agreements that was set to take effect September 4. Opinion attached. The court ruled that the FTC lacks substantive rulemaking authority with respect to unfair methods of competition under Section 6(g) of the FTC Act. Essentially, the FTC has some authority to promulgate rules to preclude unfair methods of competition but lacks the authority to create substantive rules under Section 6(g).  Interesting part of the opinion is the discussion of the power of district courts to issue a nationwide injunction. The court declined to issue nationwide relief, and instead limited its injunction to the named plaintiff and the Chamber of Commerce (and similar entities) but not the members of those entities. More to come obviously from this case and other similar cases pending elsewhere. #noncompetes

July 3, 2024-- A Dallas, Texas federal court Judge entered an injunction against the Federal Trade Commission from enforcing its 2024 rule that most non-compete agreements are unenforceable. The Judge found that the FTC lacks substantive rulemaking authority specify what are methods of "unfair competition". Litigation over the FTC's authority was anticipated. What are clients are also anticipating and experiencing is that employees an business partners, as well as courts, are scrutinizing non-compete and non-solicitation agreements. We are working with a number of these clients to review existing agreements for reasonableness and enforceability in this rapidly-evolving atmosphere. Restrictive covenants remain effective tools to protect project legitimate proprietary business interests. As the Texas Judge stated, "granting injunctive relief [to halt the FTC's non-compete ban] serves the public interest...." #noncompeteagreements #employmentlaw #restrictivecovenants

FTC ban on noncompetes stayed for now as to Texas plaintiffs (as expected by most) with a ruling on the merits by August 30, 2024! A limited scope seemed like something that was likely to happen in this interim ruling, but it’s obviously unfortunate to have an injunction order limited to these plaintiffs. Hopefully that changes with the merits ruling, but it may not. However, with the limited enforcement tools the FTC has and this sort of ruling at hand, why comply if there’s no nationwide injunction by the original effective date? #noncompeteban #restrictivecovenants #humanresources #compliance #ftc #comeandtakeit

Read our hot take on the new PAGA.

ICYMI—Featured in Law360's “Hottest Firms and Stories”: Is the FTC’s final noncompete rule dead on arrival? Attorneys Erik W. Weibust and Stuart Gerson detail key arguments raised by opponents of the FTC’s rule and what employers can likely expect from upcoming legal challenges. #Noncompetes #EmploymentLaw #HumanResources

The U.S. District Court for the Northern District of Texas (Brown, J.) granted motions last week to preliminarily enjoin the Federal Trade Commission from enforcing its noncompete ban against parties challenging it. A final decision is expected by Aug. 30, 2024. Vince Eisinger discusses how this may impact employers on our blog. #employmentlaw

In yet another blow to executive agency authority in this administration, a federal judge in Texas granted a preliminary injunction on implementation of the U.S. Federal Trade Commission’s near-total ban on noncompete agreements to consider whether the FTC ban is an overreach by the executive branch. This country was founded on principles such as the separation of powers and checks and balances in our government. When the government tries to legislate through executive fiat, the judicial branch has the opportunity to review these agency actions and determine whether Congress actually delegated this authority to the executive branch. It has taken time for this and other cases to work their way through the judicial process, but the courts are starting to agree that this administration has been improperly encroaching on the rights of businesses. There are those that may ultimately disagree with federal court decisions as of late, but this is our Constitution at work. The case is Ryan LLC et al. v. Federal Trade Commission, case number 3:24-cv-00986, in the U.S. District Court for the Northern District of Texas. May you all have a happy and safe July 4th! #constituional law #executive fiat #federalcourts #indpendenceday