Legal Update: Texas Federal District Court Partially Clocks the FTC’s Noncompete Ban

On July 3, 2024, the U.S. District Court for the Northern District of Texas granted the plaintiffs’ motion in Ryan LLC v. FTC for a preliminary injunction to block the Federal Trade Commission’s (FTC) noncompete ban while the court considers the merit of the case. The injunction applies only to the plaintiffs in the case: a Texas employer, the U.S. Chamber of Commerce and other business
organizations. The court intends to rule on the merits of the case by Aug. 30, 2024, before the ban’s scheduled effective date of Sept. 4, 2024.

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