On August 20, 2024, a federal court in Texas stopped the Federal Trade Commission (FTC) from enforcing its ban on most non-compete agreements, which was originally set to take effect on September 4, 2024.  The court explained that the FTC’s rule was “unreasonably overbroad” and lacked authority to enforce this ban.  

This means that for now, employers can stop preparing for the FTC’s ban on non-competes to take effect.  Employers, however, should continue to monitor updates and pending litigation. There are two similar complaints filed in Florida and Pennsylvania federal courts, and this Texas decision will likely be appealed to the U.S. Fifth Circuit of Appeals.   

We will continue to monitor the situation and provide appropriate updates.  If you have any questions regarding non-compete agreements, please contact your HR Consultant or our HR Hotline.  

For a reminder of previous information shared about this rule, please refer to the July 9, 2024 Updates on the FTCs Ban on Non-Competes and April 30, 2024 What You Need to Know and How to Prepare for the FTCs Ban on Non-Competes.