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Fate of FTC's Noncompete Ban Unclear After Texas Federal Court Ruling
A Texas federal court's overturning of the Federal Trade Commission's ban on noncompete clauses for most workers is far from the final word on the legality of the controversial rule, legal observers say.
A new analysis from Skadden, Arps, Slate, Meagher & Flom highlights that the Texas case is but one of three legal challenges to the measure. The Aug. 20 Texas ruling came five days after a Florida federal court preliminary enjoined the ban. However, on July 24, a Pennsylvania federal district court refused to do so, "suggesting a likelihood of a different result," the law firm said.
The FTC has said it is seriously considering appealing the Texas ruling, an outcome the Skadden analysis says is likely. That would put the case before the U.S. Court of Appeals for the Fifth Circuit. The law firm says appeals also may occur in Florida, which is in the Eleventh Circuit, as well as Pennsylvania, which is in the Third Circuit.
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