FTC Appeals Florida Decision on Non-Compete Ban

The drama over the FTC's sweeping ban on employers' use of non-compete agreements just became more complicated. Of course, the Fifth Circuit had issued a ruling that created a nationwide ban on the FTC's ability to enforce the ban on non-compete agreements, reasoning that the ban was arbitrary and capricious and that the FTC did not have authority to implement such a sweeping ban. Many wondered whether the FTC would appeal before the October 21 deadline. Last week, the FTC appealed a separate decision issued by the Middle District of Florida that prevented the FTC from enforcing the non-compete ban only against the specific named plaintiffs (Properties of the Villages, Inc. v. Federal Trade Commission, No. 5:2024cv00316 - Document 59 (M.D. Fla. 2024)). Note that a ruling from Pennsylvania found that the FTC did have authority to implement the ban. Of course, the Fifth Circuit ruling still stands (although it's still possible that the FTC will appeal). Interested individuals should continue to pay close attention as the issue proceeds through the court system. For more information on the use of non-compete agreements, visit Tax Facts Online. Read More: Link to Q3640.05. Note: Q is updated.