Legal Challenges to FTC Non-compete Ban

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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Related Content

• DOJ/FTC Antitrust Agency Developments Tracker
  See, e.g., entries for the FTC’s Fiscal Year 2023 Annual Report and FTC Chair Khan’s testimony before House Appropriations Subcommittee.

• FTC Antitrust Case Tracker (Civil Nonmerger)
  Read the court’s decision in FTC v. U.S. Anesthesia Partners, Inc. (USAP) dismissing the case against the private equity firm that, as owner and founder of USAP, had been accused of an anticompetitive roll-up scheme to drive up prices by buying up anesthesia practices in Texas. The case against USAP remains pending.

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