As expected, on August 20, 2024, a federal judge in Texas permanently blocked the Federal Trade Commission (“FTC”) rule banning most employee noncompetition agreements (the “Noncompete Rule”). The judge held that “the FTC lacks statutory authority to promulgate the Noncompete Rule, and that the Rule is arbitrary and capricious.” The judge previously temporarily enjoined the Noncompete Rule, for the plaintiffs in that case only, while considering the merits of the permanent injunction.



While the Noncompete Rule has now been permanently enjoined nationwide, employers are reminded that all state laws regarding non-compete agreements remain in force and employers must still comply with them.

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If you have questions or would like additional information, please contact our Labor & Employment attorneys or the primary EGS attorney with whom you work.