fTC ’ Snon-CompeTeClauSerule – noTSofaST labor & Employment law Section
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is empowered to make both procedural and substantive rules as is necessary to prevent unfair methods of competition .” ATS Tree Services , LLC v . FTC , No . 2:24-cv-01743 ( E . D . Pa .).
• Third , on August 15 , 2024 , the Middle District of Florida , agreeing with Ryan , preliminarily enjoined the FTC “ from implementing or enforcing the Fin al Rule ” against the plaintiff . The court noted the injunction did not have “ nationwide application .” Properties of the Villages , Inc . v . FTC , No . 5:24CV00316 ( M . D . Fla .). As the September 4 , 2024 , effective date rapidly approached , these conflicting decisions , with no nationwide ban in place , did not give the public clarity .
Nationwide Ban On August 20 , 2024 , the Ryan court provided some clarity by entering an order granting summary judgment to the plaintiffs and “ set [ ting ] aside the Non- Compete Rule .” The court ruled that this ban “ has nationwide effect .” “ Consequently , the Rule shall not be enforced or otherwise take effect on its effective date of September 4 , 2024 , or thereafter .” The court ’ s holding was based on two legal grounds :
• First , the court found “ the FTC lacks the authority to create substantive ( as opposed to procedural ) rules .” Consistent with Loper Bright Enters . v . Raimondo , 144 S . Ct . 2244 ( 2024 ), the court did not defer to the FTC ’ s interpretation of the Act .
• Second , the court found the Rule was “ arbitrary and capricious ” under the APA because , inter alia , “ it is unreasonably overbroad without a reasonable explanation .” Thus , the FTC ’ s Non-Compete Clause Rule has not taken effect . It is anticipated the Ryan decision ( and maybe others ) will be appealed , so it may be months or
Construction Law Section Holds CLE
TheConstructionlaw ClehelditsfirstCleofthe newbaryearonSept . 19 . Theattendeesreceiveda primeronthetimelysubject ofwind , water , andbuilding codeconsiderations , fromthespeakersSeanlong , p . e . anddavidfusco , p . e ., frSe , leepapwithengineeringconsultingfirmThorntonTomasetti . years before this issue is finally resolved . n
Author : Jay P . Lechner – Lechner Law
N O V - D E C 2 0 2 4 | H C B A L A W Y E R
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