Pennsylvania Judge Disagrees with Texas Judge And Denies Motion for Preliminary Injunction Challenging the FTC’s Non-Compete Rule

A judge in the U.S. District Court for the Eastern District of Pennsylvania declined on July 23 to enjoin the Federal Trade Commission’s (FTC’s) ban on non-compete agreements. ATS Tree Services, LLC v. FTC, Case No. 2:24-cv-01743-KBH.  The court rejected the employer’s argument that the agency lacks authority to establish the rule. The decision conflicts with a ruling by the U.S. District Court for the Northern District of Texas earlier this month, which preliminarily enjoined the rule for the plaintiffs in that case.