FTC Appeals Injunction Against Final Rule Banning Non-Compete Employment Agreements

Topics: Legal Information, Non-Compete and Trade Secrets

Last Friday, the Federal Trade Commission (“FTC”) gave notice to appeal Judge Brown’s nationwide bar on the FTC’s final rule creating a Non-Compete Ban or enforcement of the rule in the case of Ryan LLC v. Federal Trade Commission. This appeal followed another appeal by the FTC of an adverse ruling from Properties of the Villages, Inc. v. Federal Trade Commission.

While it is still early days on the appeals, because the Ryan appeal is within the Fifth Circuit and the Villages appeal is within the Eleventh Circuit, conflicting opinions could result. And, if there are conflicts among the Circuit Courts, the United States Supreme Court will likely give the last word as to whether the FTC’s ban must be followed or not.

For the moment, employers are relieved from any Federal rules in this area but should continue to monitor and ensure compliance with state laws governing non-compete agreements in the employment arena.

If you need assistance with determining the enforceability of non-compete agreements, please reach out to Dan M. Forman or your favorite CDF attorney.