FTC Faces Setback in U.S. District Court Over Noncompete Rule

On July 3, 2024, Judge Ada Brown of the United States District Court for the Northern District of Texas preliminarily enjoined the Federal Trade Commission ("FTC") from enforcing the Final Noncompete Rule ("Rule") against the parties to the pending lawsuit.

At this time, the prohibition on enforcement of the Rule is limited to the parties to the lawsuit. After additional briefing, the court deferred broader relief to later proceedings and intends to rule on the merits of the claim for injunctive relief on or before August 30, 2024. More ›