The FTC’s Ban on Noncompetes Remains Imminent for Most Employers as Legal Challenges Continue

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July 8, 2024

On July 3, 2024, a federal judge in Texas granted a preliminary injunction in a lawsuit challenging the FTC’s noncompete ban. Notably, the injunction only applies to those plaintiffs named in the suit. All other employers will still need to comply with the noncompete ban when it takes effect in September. A final decision on the case is expected to be issued by the end of August and could have broader implications.

Another lawsuit challenging the noncompete ban is making its way through a Pennsylvania federal court. A ruling on whether those plaintiffs will be granted a preliminary injunction should be issued by July 23. If an injunction is granted, it could be applicable to more employers nationwide.

We will continue to track each of these cases as they move forward. In the meantime, employers should plan to work toward compliance with the FTC’s noncompete ban. As always, if you have any questions about the ongoing litigation, or about compliance with the noncompete ban itself, please contact our Employment & Benefits Team.

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