The court found that the FTC’s effort to implement the rule likely exceeds its congressional authorization under the FTC Act and constitutes an arbitrary and capricious approach to the issue of regulating non-competes.
Rather than issue a nationwide injunction barring enforcement of the rule across the country, the court’s ruling is limited to the parties in the case.
The court intends to issue a final ruling on the merits by August 30, 2024, before the FTC rule is set to go into effect. The court’s subsequent ruling may prevent the ultimate implementation of the rule on a national level.
So basically If I understand this correctly, the court is slapping the FTC for jurisdiction and saying “until further ruling Ryan LLC can legally use their non compete clauses”.
So the judge has a vague notion to rule against the FTC but it’s not clear if they do or if it’s gonna have national consequences, as this could just as well be a case specific ruling.
So yeah, the indicators lean a little bit towards non competes staying legal, but we’re still way out from knowing what will happen.