Wendy Alexander provides a legal update on Ryan, LLC v. FTC in relation to her coverage of past rulings.

U.S. District Court for the Northern District of Texas, in Ryan, LLC v. FTC, holds that the U.S. Federal Trade Commission’s rule banning most non-competes is unlawful and orders that the FTC’s non-compete rule will not take effect on September 4, 2024.  As the validity of the FTC’s rule is also playing out in cases in other jurisdictions, split circuit decisions are a likely scenario.  Virginia employers should stay apprised of upcoming developments in the case law, and keep Virginia’s non-compete rule in Va. Code §40.1-28.7:8 regarding “lower wage” workers in mind (which as of January 2024 was defined per the applicable legislation as those making $73,320 or less per year).