Swiftly after the Federal Trade Commission (FTC) approved its rule banning most non-compete agreements this spring, several entitles filed suit to stop the FTC's overreach. The first of these was filed in the U.S. District Court for the Northern District of Texas by Ryan LLC, a tax firm.
The United States Chamber of Commerce also filed suit in the Northern District of Texas, but it was stayed pending the decision in the Ryan LLC suit.
On June 13, Judge Ada E. Brown entered an order stating that a hearing on Ryan LLC's "requested injunctive relief is not necessary" and committing to making a decision on the motion for a preliminary injunction seeking to block the regulation by July 3.
Good, bad, or indifferent – at least employers will get some version of clarity next two weeks before the regulations are set to go into effect in September.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.