Court Blocks FTC Non-Compete Ban (SNF/AL)

Yesterday, August 20, a Texas federal court struck down the Federal Trade Commission’s newly adopted rule banning non-compete clauses between employers and employees. The rule had been slated to become effective September 4, 2024. The U.S. District Judge said the FTC “exceeded its statutory authority” in making the rule. The court mandated that, “the Rule shall not be enforced or otherwise take effect on its effective date … or thereafter.” AHCA/NCAL provides additional information here.