Media Coverage
Source: Bloomberg Law
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Taina Rosa, Olivia Thomas
07.22.24
The Federal Trade Commission’s (FTC) new Noncompete Rule, which was issued in April 2024, is scheduled to go into effect September 4, 2024. While the FTC was recently successful in making its case in a Pennsylvania court, U.S. District Judge Ada Brown of the Northern District of Texas granted the U.S. Chamber of Commerce’s motion for preliminary injunction in its challenge to the FTC’s ban on employment noncompete agreements and partially blocked the regulation.
In her decision, Judge Brown found that the FTC lacks authority to implement the rule until the court can resolve the merits of a challenger’s claims. However, according to recent coverage, while Judge Brown’s ruling said that plaintiffs were likely to win the case on the merits, she declined to grant a nationwide injunction at the preliminary stage.
In an interview with Bloomberg Law, Employment Law partner Rebecca Carr Rizzo said that without a nationwide injunction, judges reaching different conclusions on the FTC’s noncompete rule could create further uncertainty for employers.
Noting its unlikelihood due to the Supreme Court’s recent moves and reining back agency power over the last several years, Rizzo added, “I don’t see this Supreme Court ruling in favor of the FTC or this rule.”
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