Non-Competes: What Happened to the FTC National Ban and Where Do They Stand Today?

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In April 2024, the Federal Trade Commission (FTC) issued a final rule that took the extraordinary step of banning non-competition clauses in employment agreements nationwide.  After numerous legal challenges, the ruling was found to be unconstitutional, arbitrary and capricious by U.S. District Judge Ada Brown of the Northern District of Texas. After the Judge Brown’s ruling, it is unclear the fate of non-competes and how the Federal Courts will continue to rule in the future. 

This course will provide you with an overview of non-competition clauses, the rationale behind the FTC ruling banning non-competes in employment agreements, the legal challenges that were brought across the United States about the FTC ruling, the reasons why Judge Brown found the FTC ruling unconstitutional, arbitrary and capricious and what attorneys should consider when drafting or reviewing non-compete clauses on behalf of their clients.

Learning Objectives:

• Understanding the nature of non-competes in employment agreements across the United States.

• Examining the Federal Trade Commissions’ ban on non-competes and what the potential impact to businesses would have been.

• Discussing what US States already banned or heavily restricts non-compete clauses in employment agreements already.

• Discussing why the FTC ruling was deemed unconstitutional, arbitrary and capricious by looking at the 3 main cases brought across the states challenging the FTC ruling.

• Discussing how the Supreme Court Case of Loper Bright Enterprises v. Raimondo had a hand in Judge Brown’s final ruling and what this means for future cases.

• Looking at the future of non-competes and what to expect moving forward, including how to advise clients on how to protect their businesses.

 

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