BREAKING: Federal Judge Rules FTC's Non-Compete Ban To Be Set Aside Nationwide

With more than 975 lawyers across 17 offices, Seyfarth Shaw LLP provides advisory, litigation, and transactional legal services to clients worldwide. Our high-caliber legal representation and advanced delivery capabilities allow us to take on our clients’ unique challenges and opportunities-no matter the scale or complexity. Whether navigating complex litigation, negotiating transformational deals, or advising on cross-border projects, our attorneys achieve exceptional legal outcomes. Our drive for excellence leads us to seek out better ways to work with our clients and each other. We have been first-to-market on many legal service delivery innovations-and we continue to break new ground with our clients every day. This long history of excellence and innovation has created a culture with a sense of purpose and belonging for all. In turn, our culture drives our commitment to the growth of our clients, the diversity of our people, and the resilience of our workforce.

Explore Firm Details

This just in: Judge Ada Brown ruled today on the parties' dueling summary judgment motions – 10 days before her self-imposed deadline to do so – in Ryan LLC v. FTC. Judge Brown granted the plaintiffs' motion for summary judgment while denying the FTC's motion, determining that the FTC's rule banning non-competes is an unlawful agency action and must be set aside.

United States Litigation, Mediation & Arbitration

Dawn Mertineit,Michael Wexler,Robert Milligan

+3 Authors

Your Author LinkedIn Connections

Article Insights

Seyfarth Shaw LLP are most popular:

within Compliance, Consumer Protection, Government and Public Sector topic(s)
with readers working within the Banking & Credit, Business & Consumer Services and Retail & Leisure industries

This just in: Judge Ada Brown ruled today on the parties' dueling summary judgment motions – 10 days before her self-imposed deadline to do so – in Ryan LLC v. FTC. Judge Brown granted the plaintiffs' motion for summary judgment while denying the FTC's motion, determining that the FTC's rule banning non-competes is an unlawful agency action and must be set aside. Specifically, she found that the FTC promulgated the rule in excess of its statutory authority, and that the rule is arbitrary and capricious. Most importantly, in responding to the FTC's claim that relief should be limited to the plaintiffs in the litigation, the judge noted:

"[S]etting aside agency action under § 706 has 'nationwide effect,' is 'not party-restricted,' and 'affects persons in all judicial districts equally." (emphasis added)

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Authors