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Ryan Lawsuit Halts Federal Trade Commission (FTC) Ban on Non-Compete Agreements

Salle de Presse juil. 03, 2024

Federal Judge Issues a Stay and a Preliminary Injunction Against the FTC in Response to Tax Services Firm’s Challenge

Ryan Lawsuit Halts Federal Trade Commission (FTC) Ban on Non-Compete Agreements

DALLAS (July 3, 2024) – Today, a federal court ruled for Ryan (a leading global tax services and software provider) and against the U.S. Federal Trade Commission (FTC), halting the FTC’s ban on non-compete agreements set to take effect this fall. U.S. District Court Judge Ada Brown of the Northern District of Texas issued a stay and a preliminary injunction against the FTC in response to Ryan’s lawsuit, which challenges the new rule. The judge’s decision halts implementation of the rule, originally set to take effect on September 4. The judge stated she intends to issue a final decision on the merits by August 30, 2024.

Ryan’s lawsuit, filed on April 23, challenges the FTC’s authority to issue such a rule, which imposes an extraordinary burden on business owners seeking to protect their intellectual property and to retain top talent within the professional services industry. Ryan Chairman and CEO G. Brint Ryan describes the FTC ban as “one of the most outrageous examples of government overreach that I have seen.”

In her ruling, Judge Brown stated, “the Court concludes the Commission has exceeded its statutory authority in promulgating the Non-Compete Rule, and thus Plaintiffs are likely to succeed on the merits.” She emphasized “the role of an administrative agency is to do as told by Congress, not to do what the agency think[s] it should do.”

“The court’s decision is an important step toward invalidating a rule that burdens not only Ryan, but also Ryan’s clients, and multitudes of employers and employees across America,” said John Smith, Ryan Chief Legal Officer and General Counsel. “We’re grateful that the U.S. Chamber of Commerce and Texas Association of Business joined our case shortly after we filed it. We appreciate the many organizations—which together represent a vast swath of the American economy—that filed briefs supporting Ryan’s position.”

Smith added, “Ryan will pursue a final decision on the merits that strikes down the FTC’s unlawful ban. In the same spirit, the U.S. Supreme Court in recent days has reasserted constitutional and statutory constraints to reverse overreach by the administrative state. This week, Americans celebrate our nation’s Declaration of Independence from an overreaching royal crown. Non-compete agreements predate the American Revolution, and our lawsuit seeks to preserve a robust freedom of contract for generations of enterprising Americans to come.”

À propos de Ryan

Ryan, un fournisseur mondial primé pour ses services et logiciels fiscaux, est le plus grand cabinet au monde dédié exclusivement à la fiscalité des entreprises. Le cabinet offre une gamme intégrée de services fiscaux fédéraux, provinciaux et internationaux sur une base multinationale, incluant des services de recouvrement fiscal, de conseil, de défense, de conformité et de technologie. Ryan a été récipiendaire du prix international pour l’excellence de son service, décerné par le Customer Service Institute of America (CSIA) à 11 reprises, pour son engagement envers un service à la clientèle de classe mondiale.

Grâce à l'environnement de travail dynamique myRyan, largement reconnu comme le plus innovateur du secteur des services fiscaux, l'équipe multidisciplinaire de Ryan, qui compte plus de 4 800 professionnels et associés, dessert plus de 30 000 clients dans plus de 80 pays, notamment un grand nombre des entreprises les plus connues du classement Global 5000. Pour en savoir plus sur Ryan, visitez


Melodie Elliott
Première directrice, contenu et communication marketing
+1 972.934.0022