{"id":6933,"date":"2024-08-29T20:25:00","date_gmt":"2024-08-29T20:25:00","guid":{"rendered":"https:\/\/www.brightmine.com\/us\/?post_type=resources&p=6933"},"modified":"2025-10-29T13:55:50","modified_gmt":"2025-10-29T18:55:50","slug":"ftc-noncompete-rule-reevaluate-practices","status":"publish","type":"resources","link":"https:\/\/www.brightmine.com\/us\/resources\/hr-compliance\/employment-agreements\/ftc-noncompete-rule-reevaluate-practices\/","title":{"rendered":"Reviewing practices in light of blocked FTC noncompete rule"},"content":{"rendered":"\n
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FTC’s blocked noncompete rule an opportunity to rethink practices<\/h1>\n\n\n\n

With the FTC noncompete rule blocked, employers may want to continue business as usual. But should they? This resource offers guidance.<\/p>\n<\/div>\n<\/div>\n\n\n\n

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Published: August 29, 2024 | by Robert S. Teachout<\/strong>, Legal Editor at Brightmine<\/p>\n\n\n\n

On August 20, a federal court in Texas issued a nationwide permanent injunction<\/a> blocking the Federal Trade Commission (FTC) final rule just weeks before it would have taken effect. The rule would have required employers to rescind existing noncompete agreements and actively notify workers that they are no longer in effect, except in the case of existing noncompete agreements for senior executives, and banned new noncompetes.<\/p>\n\n\n\n

The outcome, while expected, was not guaranteed; and employers anxiously waited for months for a final ruling before the rule’s effective date of September 4. Of the three court cases filed to block the FTC noncompete rule, two courts (Texas and Florida) issued preliminary rulings finding that the rule was likely unlawful, while a Pennsylvania federal district court had found in favor of the rule.<\/p>\n\n\n\n

The rule may still be revived. The FTC is seriously considering an appeal to the 5th Circuit Court of Appeals. And the Florida and Pennsylvania courts may still issue rulings with different findings and outcomes. It is possible for one or all of the cases to make their way to the US Supreme Court.<\/p>\n\n\n\n

So, what should employers do now?<\/p>\n\n\n\n

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In this resource:<\/h2>\n\n\n\n