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The Federal Trade Commission’s Non-Compete Ban has been blocked by a U.S. District Court. What now?

Posted on: September 5, 2024

The non-compete rule by the Federal Trade Commission (FTC) that sought to prohibit non-compete agreements across the country was scheduled to be implemented on September 4th of 2024; however on August 20th the U.S District Court, for the Northern District of Texas invalidated the rule preventing its enforcement stating that the FTC had overstepped its legal powers and that the rule itself seemed random and unreasonable thereby contravening the Administrative Procedure Act. This decision essentially prevents the FTC from enforcing the prohibition on non-compete agreements nationwide unless it is overturned on appeal.

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