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FTC’s Non-Compete Ban on Hold: Court Blocks Implementation

July 8, 2024

A federal judge has temporarily halted the Federal Trade Commission’s (FTC’s) rule that would ban most non-compete agreements.

What Happened?
  • A Texas judge sided with the plaintiffs who sued the FTC, arguing the agency overstepped its authority.
  • The judge believes the lawsuit has a good chance of success and that delaying the ban is in the public interest.
What’s Next?
  • The ban, originally set for September 4th, is now on hold.
  • The judge will weigh the arguments in the lawsuit and issue a final decision by August 30th on whether the rule will be permanently struck down.
The IAA Has Your Back

In April 2024, the IAA submitted comments advocating for changes to the FTC’s non-compete proposal that addressed practical considerations for advisers. More recently, in June 2024, the IAA signed a letter, with over 200 other organizations, requesting that the FTC stay the rule while litigation is pending.

We will provide ongoing updates and analysis through our committees, website, newsletters, and social media channels. Stay informed and connected with the latest developments.

Please contact the IAA legal team at iaalegalteam@investmentadviser.org with questions or comments.

Tags: FTC, Non-Compete Agreements

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