In a rapid-fire response, the Ryan Court in the Northern District of Texas this morning denied Plaintiff and Plaintiff-Intervenors’ Expedited Motion for Limited Reconsideration of the Scope of Preliminary Relief, and Plaintiff and Plaintiff-Intervenors’ Motion for Expedited Consideration of their Motion for Limited Reconsideration of the Scope of Preliminary Relief (for more on these motions, see here). In a three-sentence Order, the Court provided no explanation except that Plaintiff and Plaintiff-Intervenors “have not shown themselves entitled to the respective relief requested” and denied the motions in their entirety.
With the Court’s swift denial of the motion to expedite and reconsider, employers face increased uncertainty and are left to once again wonder how to handle their restrictive covenant programs. This leaves all watching impacted employers in the unenviable position of deciding whether to (1) wait and see until August 30, 2024 whether the Court will strike down and enjoin nationwide or vacate the FTC ban, (2) intervene in the current lawsuit and seek the interim relief of the current preliminary injunction staying the FTC’s noncompete ban, or (3) file their own suit and risk conflicting rulings and an unfavorable jurisdiction. The best course may be to wait until a substantive ruling, intervene, or rely on the FTC good faith exception as this important issue winds its ways through the courts.
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