Be Careful What You Wish For, FTC Edition

Thanks to U.S. District Judge Ada Brown, seated in the Lone Star State, Khan’s noncompete ban appears stalled. This is despite a Pennsylvania federal judge upholding the noncompete ban following an initial Texas decision that partly parked the noncompete ban. That “partial” block now appears “permanent,” per Law360. ...

Beyond the questions over the FTC’s ability to unilaterally ban non-competes, one additional matter is whether such broad bans on noncompetes is even good policy. In Texas, where bans on noncompetes are more limited, that may be top of mind given litigation involving a serial entrepreneur who’s accused of creating cookie-cutter companies and, possibly, committing elder abuse.