Employment Alert Update: District Judge Blocks FTC Ban on Noncompetes

Featured: Doris T. Bobadilla, Wendell Hall

On Tuesday, August 20, 2024, a federal district judge in Texas permanently blocked the Federal Trade Commission’s Final Rule on Noncompete Agreements on the grounds that the regulation exceeded the agency’s authority.   The details of the Rule were addressed in our previous posts on April 24 and July 24, 2024.  The Rule was scheduled to go into effect on September 4.

FTC spokesperson Victoria Graham advised that the agency was considering an appeal and noted that the “decision does not prevent the FTC from addressing noncompetes through case-by-base enforcement actions.”  Galloway will continue to follow the developments as the fight moves to the appellate courts.

Disclaimer: This material is provided for informational purposes only. It is not intended to constitute legal advice, nor does it create a client-lawyer relationship between Galloway and any recipient. Recipients should consult with counsel before taking any actions based on the information contained within this material. This material may be considered attorney advertising in some jurisdictions.

Doris Bobadilla, Esq.
Licensed in Louisiana, Mississippi, Texas, Florida
dbobadilla@gallowaylawfirm.com | 985-674-6680

Wendell Hall, Esq.
Licensed in Louisiana and California
whall@gallowaylawfirm.com | 985-674-6680

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