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Client Alert: Texas Judge Halts FTC’s Non-Compete Ban
Finally . . .
At first, pretty much every L&E attorney I interacted with thought the FTC’s non-compete ban was a done deal . . . and then we waited . . . and waited . . . saw a federal judge in Pennsylvania AGREE with the FTC . . . and that September 4th deadline kept getting a wee bit closer.
Was this national non-compete ban really going to happen?
<Texas has entered the chat>
On Tuesday, a federal judge in Texas [finally] issued a decision that permanently blocked the FTC’s rule that would have banned most non-compete agreements nationwide. The judge ruled that the FTC overstepped its authority and that the ban was “arbitrary and capricious.”
What Does This Mean for You?
For now, the FTC’s ban is off the table. If you’re in a state that allows non-competes, go to town, folks. But as we’ve been warning, maybe don’t get too comfortable? This clearly isn’t the end of the story. The FTC is considering an appeal, other legal challenges are still pending, and states are (and have been) free to pass their own legislation banning non-competes on a state-level.
As always, we’ll keep a close eye on this situation (so you don’t have to – you’re welcome) and will keep you updated as things develop. In the meantime, if you have any questions or concerns, don’t hesitate to reach out to us.
~ The W + K Team
ABOUT WEINSTEIN + KLEIN P.C.
Established in 2019, Weinstein + Klein is a boutique law firm focused on labor and employment law, business matters, and litigation. W + K works with businesses, individuals, and entrepreneurs to protect their legal interests. In addition to advising clients on employment matters and working with businesses to minimize their risk of litigation, we advise small businesses and start-ups on various business law matters.