The FTC's ban against noncompete agreements may be under threat
What organizations have joined Ryan LLC's lawsuit?
The U.S. Chamber of Commerce, Business Roundtable, and the Texas Association of Business have joined Ryan LLC's lawsuit against the Federal Trade Commission's ban on non-compete agreements4.
What is the purpose of noncompete agreements?
Noncompete agreements are contracts between employers and employees, aimed at protecting the employer's business interests by restricting the employee's ability to work for competitors or start competing businesses for a specified duration after their employment ends24. These agreements often safeguard trade secrets, client relationships, and prevent talent poaching.
When was the FTC's ban originally scheduled to start?
The FTC's ban on noncompete agreements was originally scheduled to start on September 4, 2024. However, a federal judge has issued a preliminary injunction in a lawsuit brought against the FTC, delaying the implementation of the ban for the plaintiffs involved in the case.