As we reported last year, the Federal Trade Commission (“FTC”) proposed a broad-sweeping rule that would ban virtually all non-competition agreements in employment contracts. The FTC enacted the Rule because it believes that noncompetition agreements are unfair methods of competition. The FTC’s Rule became final in April 2024 and was set to be effective starting September 4, 2024. However, on August 20, 2024, the FTC Rule was set aside by the federal court in the Northern District of Texas. Therefore, the Rule (for now) is invalid and unenforceable.
