As we have previously written, on August 20, 2024, a Texas federal district court issued an order setting aside the Federal Trade Commission’s (FTC) sweeping proposed rule that would ban and render unenforceable most non-compete clauses in employment agreements. The FTC is now appealing that district court order. Specifically, on October 18, 2024, the FTC filed its notice of appeal, such that this suit will be heading before the federal Fifth Circuit Court of Appeals for further litigation regarding the validity of the FTC’s proposed rule. The appeal will likely play out in the coming months, and our attorneys will continue to monitor and provide updates as the proceedings unfold.
If you would like to learn more about the FTC’s proposed rule, visit our website for resources, articles, and recent announcements. Click here.