{"id":6456,"date":"2024-07-08T21:03:00","date_gmt":"2024-07-08T21:03:00","guid":{"rendered":"https:\/\/www.brightmine.com\/us\/?post_type=resources&p=6456"},"modified":"2026-02-05T04:44:16","modified_gmt":"2026-02-05T09:44:16","slug":"ftc-noncompete-ban","status":"publish","type":"resources","link":"https:\/\/www.brightmine.com\/us\/resources\/hr-compliance\/employment-agreements\/ftc-noncompete-ban\/","title":{"rendered":"FTC Noncompete Ban Could Be Blocked by Summer’s End"},"content":{"rendered":"\n
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by Robert S. Teachout<\/strong>, Brightmine Legal Editor<\/p>\n<\/div>\n\n\n\n

A Texas federal court has postponed the effective date of the Federal Trade Commission (FTC) rule banning noncompete agreements<\/a>.<\/p>\n\n\n\n

The judge said she would issue a decision about whether to permanently enjoin the rule on or before August 30.<\/p>\n\n\n\n

Businesses had challenged the rule in a lawsuit, arguing that the rule exceeds the FTC’s authority under the Federal Trade Commission Act and seeking to have it permanently enjoined. In a highly anticipated ruling<\/a>, the United States District Court for the Eastern District of Texas postponed the effective date of the rule, saying the plaintiffs were likely to succeed on the merits. But the preliminary injunction applies only to the named plaintiffs of the case, including the US Chamber of Commerce but not any associated members of the organization.<\/p>\n\n\n\n

The court’s reasoning signals the FTC’s ban may be halted before it takes effect on September 4. It noted that a preliminary injunction is “an extraordinary remedy” and in some respects the criteria to issue a permanent injunction are “less demanding than [for] the preliminary injunction.”<\/p>\n\n\n\n

To obtain a preliminary injunction, the party seeking it must establish that:<\/p>\n\n\n\n