Ryan Swanson & Cleveland, PLLC
401 Union Street, Suite 1500
Seattle, WA 98101-2668
206.464.4224
Ryan Swanson & Cleveland, PLLC
401 Union Street, Suite 1500
Seattle, WA 98101-2668
206.464.4224

Ryan Swanson & Cleveland, PLLC
401 Union Street, Suite 1500
Seattle, WA 98101-2668
206.464.4224

News & Articles

Texas Court Halts FTC's Nationwide Noncompete Ban

Published July 8, 2024

On July 3, 2024 a Texas federal judge put the Federal Trade Commission’s (FTC) noncompete ban on hold by issuing a preliminary injunction. This decision comes as part of the ongoing legal challenge against the FTC’s rule, which seeks to ban nearly all noncompete agreements in the United States.

The lawsuit argues that the FTC overstepped its authority by enacting this rule. The plaintiffs claim that the FTC lacks the substantive rulemaking power to impose such a ban and that noncompete agreements, in fact, promote competition and innovation by protecting intellectual property and incentivizing investment in employee training.

The FTC maintains that its rule is within its mandate to prevent unfair methods of competition and argues that noncompete agreements hinder competition and harm workers by limiting their mobility and potential earnings.

The injunction means that the FTC’s rule, which was set to take effect on September 4, 2024, will not be enforced until the court makes a final decision on the legality of the ban. This pause provides temporary relief for businesses that utilize noncompete agreements and sets the stage for further legal battles over the FTC’s regulatory authority and the broader implications for employment practices across the country.

For questions, contact any member of Ryan Swanson’s Employment Rights, Benefits & Labor group.


Please note that the legal landscape is constantly evolving. Since the publication of this article, new or supplementary information that is not referenced herein may have become available. For questions or to stay up-to-date on the topics or issues discussed in the above article, you can subscribe to our practice group email alerts, follow us on social media, or reach out to any member of our team.

This article has been published by Ryan, Swanson & Cleveland, PLLC to inform about recent developments in the law. Because each situation is unique, this information is intended for general informational purposes only and should not be construed as legal advice on any specific facts and circumstances. Ryan, Swanson & Cleveland, PLLC is a full-service law firm located in Seattle, Washington.






Get in Touch with Our Team Today