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A federal judge has halted implementation of the Federal Trade Commission’s (FTC) highly anticipated worker non-compete rule. The rule, as written, bans existing and future non-compete agreements for virtually all workers, creating a seismic shift in employers’ ability to use such restrictions across most industries.
But on August 20, 2024, a Texas federal court judge ruled against the FTC, holding that the agency lacks the statutory authority to issue the rule, which bans most non-compete covenants with employees and other workers, and further held that the rule is arbitrary and capricious. The order was handed down in one