LaborSpeak: Texas Court Strikes Down FTC’s Non-Compete Ban on Nationwide Basis

August 21, 2024

Reading Time : 1 min

On August 20, the Northern District of Texas held that the Federal Trade Commission’s (FTC) rule banning non-competes was unlawful and set the rule aside on a nationwide basis.  As a result, the rule will not be enforced or take effect.

Previously, the court had only enjoined the FTC from enforcing and implementing the rule against the tax services firm that sued the FTC and several other parties that intervened in the case.  That decision is discussed here.  More recently, a Pennsylvania court had declined to preliminarily enjoin the rule (that decision is discussed here) and a Florida court had issued a limited preliminary injunction, only enjoining the FTC from enforcing or implementing the rule against the plaintiff in that case, much like the Texas court had done earlier.

While this decision was not necessarily a surprise given the Texas court’s initial decision in July, it comes as a relief to employers, as the rule’s September 4 effective date was fast approaching.  We will continue to monitor for any appeals and other developments.  Stay tuned for a more in-depth review of the decision to come.

Share This Insight

Previous Entries

LaborSpeak

February 12, 2025

In this installment of LaborSpeak, we discuss Attorney General Pamela Bondi’s memo setting forth the Department of Justice’s plan to investigate, eliminate,
and penalize illegal DEI and DEIA activities in both the private sector and in educational institutions that receive federal funds. 
...

Read More

LaborSpeak

February 3, 2025

In this installment of LaborSpeak, we discuss some of the major changes in the labor & employment legal and regulatory landscape that employers should
anticipate under the second Trump administration.
...

Read More

LaborSpeak

January 16, 2025

In this installment of LaborSpeak, we discuss the evolving political and legal landscape around diversity, equity and inclusion (DEI) programs and practices.  ...

Read More

LaborSpeak

November 7, 2024

In this installment of LaborSpeak, we discuss important updates to state laws that enhance protections for employees who are pregnant....

Read More

LaborSpeak

November 6, 2024

New York voters just passed Proposition One, also called the New York Equal Rights Amendment, expanding protections under the state constitution’s equal
protection clause for public employers. The state constitution will now prohibit discrimination based on race, color, ethnicity, national origin, age, disability,
creed, religion or sex—including sexual orientation, gender identity, gender expression, pregnancy, pregnancy outcomes and reproductive healthcare and
autonomy.
...

Read More

LaborSpeak

September 10, 2024

In this installment of LaborSpeak, we discuss the details of the recent Texas federal court ruling setting aside the FTC’s nationwide non-compete ban and what
may happen next.  
...

Read More

LaborSpeak

August 21, 2024

On August 20, the Northern District of Texas held that the Federal Trade Commission’s (FTC) rule banning non-competes was unlawful and set the rule aside
on a nationwide basis.  As a result, the rule will not be enforced or take effect.
...

Read More

LaborSpeak

July 24, 2024

On July 23, a judge in the Eastern District of Pennsylvania denied a company’s motion to stay the September 4 effective date of and preliminarily enjoin the
Federal Trade Commission’s (FTC) rule banning non-competes for almost all employees and independent contractors (the Rule).
...

Read More

© 2025 Akin Gump Strauss Hauer & Feld LLP. All rights reserved. Attorney advertising. This document is distributed for informational use only; it does not constitute legal advice and should not be used as such. Prior results do not guarantee a similar outcome. Akin is the practicing name of Akin Gump LLP, a New York limited liability partnership authorized and regulated by the Solicitors Regulation Authority under number 267321. A list of the partners is available for inspection at Eighth Floor, Ten Bishops Square, London E1 6EG. For more information about Akin Gump LLP, Akin Gump Strauss Hauer & Feld LLP and other associated entities under which the Akin Gump network operates worldwide, please see our Legal Notices page.