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Abstract

The Federal Trade Commission's (FTC) Final Rule to ban most employee non-compete agreements, originally set to take effect on September 4, 2024, has been delayed due to ongoing litigation. Court decisions in Pennsylvania and Texas have resulted in conflicting rulings regarding the FTC's authority to enforce such a ban. A Pennsylvania district court upheld the FTC's power to regulate non-compete agreements, while a Texas court ruled against it, declaring the ban arbitrary and capricious. No appeals have been filed yet, and the issue remains unresolved, with potential appellate court decisions and the results of the presidential election likely influencing the rule's future.

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