U.S. District Court Stays and Enjoins Enforcement of FTC’s Non-Compete Ban: What Texas Employers Should (or Shouldn't) Do Next

On July 3, 2024, the United States District Court for the Northern District of Texas issued a Memorandum Opinion and Order, granting a stay and preliminary injunction against the enforcement and effective date of the Federal Trade Commission's ("FTC") Non-Compete Rule. The ruling is not nationwide and applies only to Plaintiff, Ryan, LLC and Plaintiff-Intervenors, the U.S. Chamber of Commerce, Business Roundtable, Texas Association of Business, and Longview Chamber of Commerce (collectively "Plaintiffs"). Judge Ada Brown's Memorandum Opinion expressed the intention of entering a merits disposition on this lawsuit on or before August 30, 2024; just days before the Non-Compete Rule's September 4, 2024, effective date. This blog summarizes the court's rationale, holdings, and the scope of the relief ordered. Read the full blog here.

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