On August 20th, a federal judge put a stop to the FTC’s Non-Compete Rule that was supposed to roll out on September 4th. This rule would have pretty much banned non-compete agreements across the board, overriding all the different state laws on the matter. While it was supposed to take effect in early September, some had already warned that it might not go through.

The U.S. District Court for the Northern District of Texas stepped in and ruled that the FTC didn’t have the authority to enforce such a sweeping ban. The court not only struck down the rule but also issued a final judgment that prevents it from being enforced anywhere in the country.

So, for now, employers don’t need to worry about going through their existing non-compete agreements to make sure they meet the FTC’s now-invalidated requirements, including the new notice requirements. However, if you’re an employer in Oregon or Washington, don’t forget you still need to follow your state’s specific laws on non-compete agreements.

On August 20th, a federal judge put a stop to the FTC’s Non-Compete Rule that was supposed to roll out on September 4th. This rule would have pretty much banned non-compete agreements across the board, overriding all the different state laws on the matter. While it was supposed to take effect in early September, some had already warned that it might not go through.

The U.S. District Court for the Northern District of Texas stepped in and ruled that the FTC didn’t have the authority to enforce such a sweeping ban. The court not only struck down the rule but also issued a final judgment that prevents it from being enforced anywhere in the country.

So, for now, employers don’t need to worry about going through their existing non-compete agreements to make sure they meet the FTC’s now-invalidated requirements, including the new notice requirements. However, if you’re an employer in Oregon or Washington, don’t forget you still need to follow your state’s specific laws on non-compete agreements.