On July 3, 2024, the U.S. District Court for the Northern District of Texas issued an injunction against the enforcement of a Federal Trade Commission (FTC) rule that sought to abolish most employee noncompete agreements across the United States. This ruling only applies to the plaintiffs named in the lawsuit. Foley & Lardner LLP represented the plaintiffs, arguing that the FTC lacks the authority to implement such a broad rule without Congressional approval. The court’s decision serves as a significant check on the FTC’s regulatory powers and highlights the ongoing legal battles over the use of noncompete clauses in employment contracts. This development is expected to influence future regulatory actions and court rulings on the matter.

Legal Services, Public Administration, Human Resources,United States, Texas

Federal Court Enjoins Effect of FTC Noncompete Rule — But Only for Named Plaintiffs