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Legal Challenges to FTC Non-compete Ban

June 04, 2024 (1 min read)

On April 23, 2024, the FTC, by a 3-2 vote, issued its controversial, long-awaited final rule banning nearly all non-competes that would have significant impact: nearly one in five Americans are subject to a non-compete. But the ban’s effect will likely be up to the courts to decide. First up is Judge Ada Brown, a Trump appointee, presiding over a lawsuit brought by the accounting firm Ryan, LLC with the Chamber of Commerce intervening. Plaintiff asks the federal district court to vacate the non-compete rule, alleging that it is an unprecedented and unconstitutional federal power grab. The FTC majority counters that non-competes are not only “unfair” to competition, but banning them would juice the economy, creating 8,500 new businesses per year. To stay abreast of the fate of non-competes and other happenings at the FTC and DOJ Antitrust Division, follow the DOJ/FTC Antitrust Agency Developments Tracker.

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