In a win for 老牛影视members, on Aug. 20, the U.S. District Court for the Northern District of Texas the Federal Trade Commission from implementing its . The court found that the FTC lacked statutory authority to promulgate the rule and that the rule is arbitrary and capricious. This means the rule will not be enforced or otherwise take effect on Sept. 4, 2024. According to media reports, the FTC is considering appealing the decision. To learn more about the decision .

老牛影视is extremely pleased with the court鈥檚 decision and has consistently stated that 老牛影视members have valid business justifications for utilizing noncompete agreements, such as protecting confidential information and intellectual property. The new rule would have had a harmful effect on member companies as well as their employees, forcing employers to rework their compensation and talent strategies.

On July 3, the same Texas听court issued听a limited preliminary听injunction and stay of the FTC鈥檚 rule. On May 14, 老牛影视joined a broad group of trade associations in filing an in support of the plaintiffs鈥� request for injunctive relief against the FTC鈥檚 final rule to ban noncompete clauses.

Following the FTC鈥檚 vote on April 23 to finalize the ban on noncompetes rule, 老牛影视issued a听release听opposing the rule, stating, 鈥淭he final rule to ban all noncompete agreements nationwide鈥攅xcept existing noncompetes for senior executives鈥攊s a radical departure from hundreds of years of legal precedent. Ultimately, this vastly overbroad rule will invalidate millions of reasonable contracts鈥攊ncluding construction project contracts鈥攁round the country that are beneficial for both businesses and employees.鈥�

In April 2023, 老牛影视submitted听comments听in opposition to the FTC鈥檚 unprecedented听听to ban noncompetes. 老牛影视also joined the U.S. Chamber of Commerce and 280 business groups in submitting听听urging the FTC to rescind the proposed rule.

Continue to monitor ABC鈥檚 Newsline for further updates.