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UPDATE – FTC Non-Compete Clause Rule Published and Challenged

May 7, 2024 Business & Tax Blog Labor & Employment Blog

On May 7, 2024, the Federal Trade Commission’s (FTC’s) Non-Compete Clause Rule was published in the Federal Register. It will become effective in 120 days, September 4, 2024, unless court or agency action delays or stops it. As noted in our April 29, 2024 blog post, lawsuits were promptly filed challenging the Rule. In Ryan, LLC v. FTC, pending in the Northern District of Texas, expedited briefing on the plaintiff’s emergency motion for a preliminary injunction and stay of the Rule has been requested. The Texas court ordered the FTC to respond by 5:00 p.m. CT on May 7. The Ryan plaintiff is seeking to vacate the Rule and enjoin the FTC from enforcing it.

For a copy of the published FTC Non-Compete Rule, go to: For guidance on how the Rule may impact your existing agreements or steps to consider before it may become effective and to protect your confidential information and relationships with employees, customers, and others, please contact one of our Employment Attorneys.

Gail E. Farb