Earlier this summer, Winstead’s Labor & Employment team reported that Judge Ada Brown in the U.S. District Court for the Northern District of Texas issued a preliminary injunction as applied only to the plaintiffs in Ryan LLC V. Federal Trade Commission. At the time, the memorandum opinion Judge Brown issued alongside the injunction suggested that she leaned in favor of vacating the Federal Trade Commission’s (“FTC”) Noncompete Rule (“FTC Rule”) entirely. Judge Brown set a briefing schedule on Ryan LLC’s motion for summary judgment, which signaled a decision on the merits of Ryan LLC’s claims would be made by August 30, 2024. Yesterday, ten days prior to her stated timeline—and just four days after briefing closed—Judge Brown issued her memorandum opinion and order setting aside the FTC Rule and holding that the FTC Rule “shall not be enforced or otherwise take effect on its effective date of September 4, 2024 or thereafter.”Continue Reading Pencils Down on Those Notices, Employers: A Federal Judge Just Set Aside FTC Noncompete Rule
Steve Schueler
sschueler@winstead.com
713.650.2763
As an experienced litigator, Steve is an effective advocate and has represented employers in both the courtroom and before administrative agencies.
Lawsuits Lead to Inconsistent Judicial Rulings Regarding the FTC’s Noncompete Ban
Winstead’s Labor & Employment team previously reported that the Federal Trade Commission (“FTC”) issued its final rule largely banning noncompetes nationwide (“Rule”), spurring races to the courthouse in the federal district courts. In that regard, we reported that Judge Ada Brown in the United States District Court for the Northern District of Texas issued a ruling on July 3, 2024, in Ryan LLC v. Federal Trade Commission, enjoining the FTC from enforcing the Rule against the specific plaintiffs in that case until Judge Brown makes a decision on the ultimate merits of the action. Judge Brown is slated to rule on the merits of the case on or before August 30, 2024.Continue Reading Lawsuits Lead to Inconsistent Judicial Rulings Regarding the FTC’s Noncompete Ban
Texas Federal Court Enjoins the FTC from Implementing and Enforcing the Noncompete Ban
Winstead’s Labor & Employment team previously reported that the FTC issued its final rule on the proposed noncompete ban and that a Dallas-based tax services company filed suit in Texas seeking a stay of the FTC’s rule. Back in May, Judge Ada Brown in the United States District Court for the Northern District of Texas set out a briefing schedule for Ryan LLC’s motion to stay the FTC’s final rule, wherein Judge Brown promised to render a decision on whether to stay the rule by July 3, 2024.Continue Reading Texas Federal Court Enjoins the FTC from Implementing and Enforcing the Noncompete Ban
The FTC’s Noncompete Ban is Published…What Now?
On April 24, 2024, Winstead’s Labor & Employment team reported that—after much anticipation— the FTC issued its final rule banning noncompete agreements nationwide. In our initial post, we noted that the final rule had yet to be published in the Federal Register but that its publication triggers the 120-day period before the rule becomes effective. The final rule was published in the Federal Register on May 8, 2024, and the FTC notes that its expected effective date is therefore September 4, 2024.Continue Reading The FTC’s Noncompete Ban is Published…What Now?
The FTC Did What?! It Banned Noncompetes
Over a year ago, in January 2023, we reported on Winstead’s Employer Law Resource Blog that the Federal Trade Commission issued a proposed rule banning noncompetes. The FTC later extended the original 90-day notice-and-comment period and thereafter apparently took its time considering the multitude of comments it received. Finally, on April 23, 2024, the FTC issued a press release announcing the issuance of its final rule officially banning noncompetes nationwide.Continue Reading The FTC Did What?! It Banned Noncompetes
Implementing Your Mandatory Arbitration Program
Mandatory arbitration agreements for employees have been enforceable for decades. Over the last several years, there has been an ongoing controversy between the Fifth Circuit Court of Appeals, among others, and the National Labor Relations Board as to whether mandatory arbitration agreements which prohibit collective actions are enforceable. In the recent decision of Epic Systems Corp. v. Lewis, the U.S. Supreme Court has now held that employers may impose mandatory arbitration agreements which deny employees the right to file collective action arbitrations. In other words, agreements requiring employees to proceed individually in arbitration are enforceable. In the wake of this decision, many employers are opting to require their current employees to agree to mandatory arbitration.
Continue Reading Implementing Your Mandatory Arbitration Program
Americans with Disabilities Act (ADA) Website Accommodations
In what appears to be the first website accommodation decision within the Fifth Circuit, Judge Sim Lake of the Southern District of Texas District Court found that a “website is not a place of public accommodation” under the Americans with Disabilities Act (“ADA”). Zaid v. Smart Financial Credit Union, No. H-18-1130, 2019 U.S. Dist. LEXIS 11363 (S.D. Tex. Jan. 24, 2019). Stephen W. Schueler and Modinat “Abby” Kotun defended Smart Financial Credit Union (“SFCU”) against allegations that SFCU’s website discriminated against blind individuals due to its alleged incompatibility with the plaintiff’s screen reader, which he used to access websites. The plaintiff sought declaratory and injunctive relief requiring SFCU to ensure that its website was accessible to the visually-impaired along with attorneys’ fees.
Continue Reading Americans with Disabilities Act (ADA) Website Accommodations