Case: Ryan LLC V. FTC, 2024 WL 3879954 (N.D. Tex. Aug. 20, 2024); ATS Tree Services V. FTC, 2024 WL 3511630 (E.D. Pa. July 23, 2024); Properties Of The Villages, Inc. V. FTC, 2024 WL 3870380 (M.D. Fla. Sept. 4, 2024)
If you have a question about how this decision may affect your non-compete agreement or other employee rights–related issues, our New Mexico employee’s rights lawyer is available to discuss your situation.
Brief Facts
The FTC issued a rule to ban most non‑compete clauses nationwide. Multiple lawsuits followed. A Texas federal judge entered summary judgment for the challengers and issued a nationwide injunction blocking the rule. Other courts split on the FTC’s authority, and appeals are pending.
What The Court Decided
As of today, the FTC cannot enforce its non‑compete ban due to the nationwide injunction. However, the agency still investigates individual non‑competes under existing law, and state laws limiting non‑competes remain in force.
What This Means In Plain English
You cannot assume your non‑compete is invalid just because of the FTC’s rule. The ban is paused. But many non-competes are still unenforceable under state law if they are too broad or not properly supported.
How This Affects Employees
Have a lawyer review any non‑compete before you switch jobs.
If your agreement is overbroad (for example, no geographic limit or “any capacity” bans), you may have leverage to narrow or void it.
Keep an eye on appeals—future rulings could change the landscape quickly.
If you need help with employment related legal issues, Davie & Valdez P.C. is here for you. We offer free consultations and work on a contingency basis. Reach out to us today or anytime you have a need for legal guidance.
Note: This post summarizes recent developments and is not legal advice. Speak with a lawyer about your situation.