Texas Federal Court Blocks FTC Proposed Rule: Is this the End of the Non-Compete Saga?

On August 20, 2024 a Texas federal court issued a nationwide order preventing the Federal Trade Commission’s (FTC) Non-Compete Rule from going into effect. For the time being, employers are not required to comply with the FTC’s proposed rule to prohibit employers from imposing non-compete clauses on employees.  

On this episode of Briefly Legal, Labor & Employment attorneys Chris Vaught and Logan Hibbs discuss the Texas court’s ruling in Ryan LLC v. Federal Trade Commission, and the two issues at the center of the argument: (1) whether the FTC lacked statutory authority to promulgate the Rule; and (2) whether the Rule was arbitrary and capricious under the Administrative Procedures Act (APA). With an appeal from the FTC likely coming, Chris and Logan also discuss why employers should prepare for all outcomes as this saga continues.

About Chris Vaught and Logan Hibbs

Additional Resources Texas Federal Court Finds FTC's Non-Compete Rule Unlawful: Are Employers Across the Nation in the Clear? 

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