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Employers Score Another Win Against FTC, But Noncompete Ban Looms
Aug 20, 2024

Employers Score Another Win Against FTC, But Noncompete Ban Looms

Topics: Court Decisions, Non-Compete and Trade Secrets

In July, this blog alerted you to the outcome of the preliminary injunction rulings in Ryan, LLC v. Federal Trade Commission and ATS Tree Services, LLC v. Federal Trade Commission, which resulted in a 1-1 tie between employers and the FTC. On August 14, 2024, employers won another limited injunction prohibiting the FTC from enforcing the ban against the plaintiff, Properties of the Villages, Inc. Properties of the Villages, Inc. v. Federal Trade Commission. Thus far, each employer victory is narrowly applied to the parties related to the immediate case. A nationwide ban or injunction is not in effect.

Therefore, all eyes are focused on Texas, as the Ryan court indicated that it would make a final decision on August 30, 2024. That decision may have more far-ranging implications.

Planning Ahead – Hope for the Best, Prepare for the Worst

As the litigation continues, employers should understand that unless a broader injunction is issued before September 4, 2024, the FTC's ban on noncompete agreements, including providing notices to employees and former employees will be the law of the land and employers should prepare accordingly.

Employers that utilize noncompete agreements should continue to monitor legal developments closely and consult with legal counsel, including CDF’s Trade Secret Practice Group leaders, Dan M. Forman and Ashley A. Halberda, to prepare for the worst while hoping for the best outcome. 

About CDF

For over 25 years, CDF has distinguished itself as one of the top employment, labor and immigration firms in California, representing employers in single-plaintiff and class action lawsuits and advising employers on related legal compliance and risk avoidance. We cover the state, with five locations from Sacramento to San Diego.

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About the Editor in Chief

San Diego Associate Attorney. Taylor has experience defending employers of all sizes in employment-related claims regarding wrongful termination, discrimination, harassment, retaliation, COVID-19 compliance, and employment-related tort and contract claims. Taylor also has experience defending management in wage and hour class actions and PAGA representative actions. Taylor is a member of the Lawyers Club of San Diego and received her Juris Doctor from the University of San Diego School of Law, where she was a member of the Student Bar Association, Employment and Labor Law Society, Business Law Society, and Women’s Law Caucus.
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