Motion Seeking to Stay or Enjoin FTC Final Rule Banning Employer-Employee Non‑Competes Set for Ruling by July 3, 2024

On May 7, 2024, in Ryan, LLC v. FTC et al., Judge Ada Brown of the U.S. District Court for the Northern District of Texas set a briefing schedule on Ryan’s Motion for Stay of Effective Date and Preliminary Injunction (the “Motion”) attacking the FTC Final Rule banning employer-employee non‑compete restrictions, and ordered that she would rule on the merits of the Motion on or before July 3, 2024—two months before the FTC Final Rule is scheduled to become effective on September 4, 2024. 

In related litigation, on May 6, 2024, Judge J. Baker Campbell stayed a similar federal court challenge to the FTC Final Rule, which the U.S. Chamber of Commerce filed on April 24, 2024 in the Eastern District of Texas, deferring to the first filed Ryan case. On May 8, 2024, the U.S. Chamber of Commerce filed an unopposed Motion to Intervene in the Ryan case.

Vedder Price’s two recent articles on the FTC Final Rule are available here and here.

If you have any questions regarding the topics in this post, please contact Anthony Ashley at aashley@vedderprice.com, Alex Weinstein at aweinstein@vedderprice.com, or any Vedder Price attorney in our Restrictive Covenant and Trade Secret practice.