Employers have been closely following legal challenges to the Federal Trade Commission’s (FTC) proposed ban on non-competes
On July 3rd, a federal court in Texas ruled in favor of a company and other interested parties by granting a motion for a preliminary injunction to stop the FTC ban from going into effect.
According to the judge who issued the ruling, the main rationale for the decision is that the FTC lacks authority to create substantive rules regarding unfair methods of competition.
While the ruling only applies to the parties in the Texas case, the court noted that a decision on the merits of the FTC’s non-compete rule would be issued on or before August 30, 2024.