On Aug. 20, 2024, the U.S. District Court for the Northern District of Texas set aside the FTC’s noncompete ban in the Ryan matter, and it will not be permitted to be implemented anywhere in the country.
The court made clear in its memorandum opinion and order that the FTC’s noncompete rule is set aside and “shall not be enforced or otherwise take effect on September 4, 2024 or thereafter.”
While this decision may launch a long appeals process, for now the FTC’s noncompete ban and notice requirements set to take effect Sept. 4 will not be enforced.