On August 20, 2024, the U.S. District Court for the Northern District of Texas granted summary judgment to the plaintiffs in Ryan, LLC v. Federal Trade Commission, holding that the Federal Trade Commission's (FTC) new non-compete rule (the Rule) is unlawful and must be set aside.
The court had previously entered a July 3, 2024 order preliminarily enjoining enforcement of the Rule against the plaintiffs Ryan, LLC, a tax services company, and the Chamber of Commerce of the United States (together with certain other pro-business associations), but the court's summary judgment order enjoined enforcement of the Rule nationwide. In so holding, the court emphasized that the Administrative Procedure Act (APA) does not contemplate party-specific relief and setting aside an agency action under the APA has nationwide effect, is not party-restricted, and affects persons in all judicial districts equally.
FTC Non-Compete Rule Update: Texas District Court Blocks Rule's Implementation on a Nationwide Basis
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