Federal Court Strikes Down FTC Non-Compete Ban

On August 20, 2024, a federal court blocked the Federal Trade Commission (FTC) from implementing a final rule on September 4, 2024, to impose a nationwide ban on non-compete employment agreements. Non-compete agreements are used by a wide range of employers, including hospitals and other health care entities, to limit former employees from working for an organization’s competitors for a period of time after separation. The court ruled against the ban on the grounds that it was “unreasonably overbroad.” In a statement on the ruling, the FTC said it is considering an appeal. Further, the decision does . . .