Employers across the country have been relieved of the obligation to comply with the Federal Trade Commission’s rule banning most postemployment noncompetes — for now. On August 20, U.S. District Judge Ada Brown of the U.S. District Court for the Northern District of Texas granted summary judgment for plaintiffs in Ryan LLC v. FTC.
Judge Brown set aside the rule just two weeks before it was scheduled to go into effect on September 4 and ordered that it cannot be enforced nationwide.
As a result, employers do not need to comply with the rule’s notice and other requirements at this time. Employers can continue to maintain and enforce their current noncompetes pending resolution of the outstanding challenges to the rule.
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Original article published in Law360.