Ftc Proposes New Rule To Ban Non Compete Clauses In our recent post, “the ftc banned non competes: what this means for you,” we explored the federal trade commission’s (ftc) sweeping new rule banning non compete agreements. this rule was set to shake up the workplace. since then, there’s been a major development that might affect how this rule plays out. what happened?. As a recap, the ftc’s “final rule” announced on april 23, 2024, would have banned nearly all non compete provisions and provisions functioning as non competes (in the ftc’s view).
Update On The Ftc S Ban On Non Compete Agreements Thrift Mclemore Under the ftc’s new rule, existing noncompetes for the vast majority of workers will no longer be enforceable after the rule’s effective date. existing noncompetes for senior executives who represent less than 0.75% of workers can remain in force under the ftc’s final rule, but employers are banned from entering into or attempting to. A federal judge in texas on tuesday barred a us federal trade commission rule from taking effect that would ban employers from requiring their workers to sign non compete agreements. the. Ftc's non compete ban overturned: a federal court in texas ruled that the ftc lacked the authority to enforce a nationwide ban on non compete agreements, deeming the rule arbitrary and. On august 20, 2024, a federal judge in texas ruled that the ftc's non compete ban is unlawful and set aside the rule nationwide. the ftc appealed this decision but recently paused that appeal in a motion filed on march 7, 2025. the ftc must submit a “status report” by mid july to advise the courts on how the ftc intends to move forward.
The Ftc Banned Non Compete Agreements What Does That Mean For Georgia Ftc's non compete ban overturned: a federal court in texas ruled that the ftc lacked the authority to enforce a nationwide ban on non compete agreements, deeming the rule arbitrary and. On august 20, 2024, a federal judge in texas ruled that the ftc's non compete ban is unlawful and set aside the rule nationwide. the ftc appealed this decision but recently paused that appeal in a motion filed on march 7, 2025. the ftc must submit a “status report” by mid july to advise the courts on how the ftc intends to move forward. Under the noncompete rule, the ftc adopted a comprehensive ban on new noncompetes with all workers, including senior executives. the final noncompete rule provides that it is an unfair method of competition—and therefore a violation of section 5—for employers to enter into noncompetes with workers. On tuesday, us district judge ada brown in dallas, texas ruled that the antitrust agency exceeded its statutory authority to ban practices related to unfair methods of competition, saying the. “on april 25, 2024, plaintiff ats tree services, llc (“ats”) brought a case challenging the federal trade commission’s (“ftc”) non compete clause rule (“the final rule” or “the rule”), which bans the use of most non compete clauses in employment contracts. shortly after filing its complaint, ats moved for a stay of the. The ftc’s attempt to ban non compete agreements represents a transformative moment in labor policy, with goals to improve worker freedom and economic flexibility. however, its implementation faces substantial legal and political obstacles, leaving the rule in limbo for now.