In a significant legal development, a Texas federal judge has issued a preliminary injunction against the Federal Trade Commission’s (FTC) rule that bans noncompete agreements. This ruling is in response to a challenge by tax preparation company Ryan LLC and the U.S. Chamber of Commerce. The court’s decision puts a temporary hold on the rule

On Friday, July 9, 2021, President Biden issued a sweeping executive order that asked the Federal Trade Commission (“FTC”) to develop new regulations that ban or limit noncompete agreements.

The request has no immediate impact on existing noncompete agreements, but employers should expect new regulations in the coming months.

In the meantime, many questions remain

The New York Times this morning has an article that suggests that non-compete agreements are being used increasingly in a broader array of jobs.

Pick your fights carefully

His evidence? Well, the article doesn’t cite that.

Though, to the reporter’s credit, in noting the discussion going on in Massachusetts over legislation