As we advised in a prior alert, on April 23, 2024, the FTC issued the Non-Compete Clause Rule (the “Non-Compete Rule” or the “Rule”) that bans non-compete agreements, with limited exceptions, commencing on September 4, 2024. Immediately following the Non-Compete Rule’s publication, businesses in Texas and Pennsylvania brought lawsuits. Both challenged the FTC’s statutory authority to promulgate the Non-Compete Rule and the Rule’s merits under the Administrative Procedures Act (the “APA”) and sought preliminary injunctions, staying the effective date.
