Noncompete ruling challenged.

The FTC’s proposed noncompete ban, scheduled for September 4, faces a setback due to a preliminary injunction from Judge Ada Brown of the Northern District of Texas. This ruling, prompted by a lawsuit from Ryan LLC, argues that the FTC overstepped its authority. The ban would make most noncompete clauses unenforceable, except for senior executives earning over $151,164. The decision reflects recent legal shifts, such as the Supreme Court’s overruling of Chevron deference. The injunction currently applies only to Ryan LLC, but the outcome may influence other cases, potentially requiring Supreme Court intervention.

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