Articles Posted in July, 2024

Earlier this month, we wrote about a Texas federal court’s issuance of a limited preliminary injunction staying the Federal Trade Commission’s (FTC) rule banning non-compete clauses for the plaintiffs in that case. Despite not issuing a preliminary nationwide ban, the Texas federal court stated it would render a final decision on August 30, 2024, before the rule becomes effective on September 4, 2024. Based on language contained in the Texas federal court’s opinion on the preliminary injunction, it appears likely that the Texas federal court will ultimately issue a permanent injunction, effectively killing the FTC’s non-compete ban.

However, on July 23, 2024, a federal court in Pennsylvania refused to follow the Texas court’s lead and decided not to enjoin the FTC’s non-compete ban temporarily. Unlike the Texas federal court, the Pennsylvania federal court ruled that the plaintiff did not satisfy its burden of establishing the need for a preliminary injunction.

Read the full blog post.