On August 20, 2024, a federal judge in Texas struck down the Federal Trade Commission (FTC) ban on non-compete agreements, ruling that it exceeded the agency’s authority. The ruling made the judge’s July 3 injunction, which temporarily blocked the ban from being enforced, permanent and nationwide. The ban, which would have taken effect Sept. 4, 2024, would have made it illegal for employers to include such agreements in employment contracts and would have invalidated most existing clauses. The FTC has indicated it may appeal the ruling.
As previously noted, non-competes have been limited in scope in Hawaii since the 2022 Hawaii Supreme Court decision which ruled that a non-compete is unenforceable if its only purpose is to prevent competition.