Federal Judge Rules FTC Regulation Banning Non-Compete Agreements "shall not be enforced . . . . on September 4, 2024, or thereafter."

 Yesterday, Judge Ada Brown in the Northern District of Texas struck down the FTC's new regulation banning non-compete agreements, which was set to become final in two weeks on September 4, 2024.  Ryan LLC v. FTC, Case No. 3:24-cv-00986 (N.D. Tx Aug 20, 2024).   While the FTC plans to appeal, employers have some breathing room waiting for next steps.  The Court had previously preliminarily enjoined the rule only against the parties to the litigation.  

The Court's Order states in relevant part as follows:

    The Court sets aside the Non-Compete Rule, 16 C.F.R. § 910.1–.6, and the Rule shall not be enforced or otherwise take effect on September 4, 2024, or thereafter. This is a final and appealable judgment. See Fed. R. Civ. P. 54. All relief not expressly granted is denied.

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