FTC Proposed Ban on Noncompete Agreements Blocked:
In April 2034 the FTC announced a nationwide ban on almost all post-employment termination noncompete agreements (the “FTC Rule”). In August 21, 2024, in Ryan LLC v. FTC, a federal court blocked FTC Rule. The federal court focused on the authority of the FTC, concluding that the FTC lacked statutory authority to put the FTC Rule into effect. This seems like a fatal blow the FTC Rule, which is unlikely to be implemented. It also is a victory for employers who rely on noncompete agreements. Reminder to our clients that noncompete agreements remain valid and enforceable if permitted under state law. California bans noncompete agreements, meaning the state does not recognize them at all.
