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Status Update on Employee Non-Competes

May 9, 2024

Don Walsh

Disclaimer - this article relates to legal issues that are evolving rapidly. We will continue to monitor the situation and provide further updates on our site as they arise.

RKW Law Group has been following closely the Federal Trade Commission’s (FTC) final rule seeking to ban employee noncompetes and the court challenges filed to stop it. Two suits were filed in Texas (one by the U.S. Chamber of Commerce and a second by a global tax services firm) challenging the rule and another case was filed by a small tree-service business employing 12 people in the U.S. District Court for Eastern District of Pennsylvania, all seeking to block the rule.

One of the Texas cases has been stayed while Judge Ada Brown of the Northern District of Texas issued an order setting a schedule to decide the dispute by July 3, 2024 based on the motion for a stay of the effective date of the rule and a preliminary injunction. Without a stay, the FTC rule is set to go into effect on September 4, 2024.

We will continue to monitor the situation and keep you updated. If you have specific questions, feel free to reach out to any of our RKW lawyers.

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