FTC Non-Compete Prohibition Blocked in Recent Ruling

We wanted to share a significant update that may impact your business.

Generally, the Federal Trade Commission (FTC) had recently imposed a ban on non-compete agreements between employees and employers. This new ban would have prohibited agreements between employers and employees that seek to prevent an employee from competing against his employer, and it would have required employers to rescind all existing non-compete clauses, effective September 4, 2024. However, August 20th, a federal court in Texas issued a ruling that blocked the FTC’s new rule.

What The Court Ruling Blocking the FTCs Non-compete Rule Means

The Court's decision limits the FTC's ability to enforce a ban on non-competes. However, the FTC has stated that they will continue to address non-competes through case-by-case enforcement actions, and it is crucial for business owners to understand how this may affect their liability in the future regarding non-competes.

Our South Texas Business Lawyers Are Ready to Help

At STBL, we are closely monitoring the situation to provide our clients with the most up-to-date information. We recommend that all SMBs and startup founders stay informed and consider how this ruling might affect their operations.

Navigating complex legal challenges like the FTC’s non-compete ruling requires trusted guidance. Our business lawyers are here to help you protect your interests, understand your obligations, and prepare for what’s ahead. Please don't hesitate to reach out to our team online or (210) 761-6294 at if you have any questions or need further guidance on how this development might impact your business.