Sullivan & Cromwell LLP Logo
  • Home
  • Lawyers
  • Practices
  • Insights
  • About
  • Careers
  • Alumni
  • Twitter icon
  • LinkedIn icon
  •  icon
  • Podcasts icon
© 2025 Sullivan & Cromwell LLP
    • Home
    • Lawyers
    • Practices
    • Insights
    • About
    • Careers
    • Alumni
    Home /  Insights /  Memos, Newsletters And Alerts /  Memo
    S&C Memos

    Federal Court Preliminarily Enjoins FTC’s Non-Compete Rule, but Declines to Grant Nationwide Preliminary Relief

    Full Memo
    • Related Practices
    July 5, 2024

    Court Holds that Plaintiffs Are Likely to Succeed on the Merits of Their Claims that the FTC Lacks Statutory Authority to Promulgate the Non-Compete Rule and that the Rule Is Arbitrary and Capricious

    On July 3, 2024, Judge Ada Brown of the U.S. District Court for the Northern District of Texas issued the first ruling in the three pending legal challenges to the Federal Trade Commission’s Non-Compete Rule. In the 33-page decision, Judge Brown preliminarily enjoined the FTC from enforcing the Non-Compete Rule and stayed the Rule’s effective date, but only as to the specific plaintiffs in the action. In doing so, the Court determined that the plaintiffs were likely to succeed on the merits of their claims that the FTC lacks statutory authority to promulgate the Non-Compete Rule and that the FTC’s decision to ban non-compete agreements nationwide was arbitrary and capricious. Judge Brown stated that she expects to issue a final ruling on the merits on or before August 30, 2024, prior to the Rule’s effective date of September 4.

    Read More

    Read More
    Stay Updated

    Subscribe to stay current on S&C Insights.

    Related Practices

    • Antitrust
    • Corporate Governance
    • Corporate Governance Litigation
    • Employment Law
    • Environmental, Social and Governance (ESG)
    • Executive Compensation
    • General Practice
    • Litigation
    • Mergers & Acquisitions
    • Venture Capital & Emerging Growth Companies
    Sullivan & Cromwell LLP Logo
    • Twitter icon
    • LinkedIn icon
    • RSS Feed icon
    • Podcasts icon
    • Home
    • Contact Us
    • Information Policy Relating to Cookies
    • Privacy Policy
    • California Privacy Policy
    • Website Notice
    • Attorney Advertising Notice
    © 2025 Sullivan & Cromwell LLP