Press Room

Ryan Lawsuit Succeeds in Striking Down Federal Trade Commission (FTC) Ban on Non-Compete Agreements

Salle de Presse août 20, 2024

DALLAS (August 20, 2024) – Today, a federal court ruled for Ryan (a leading global tax services and software provider) and against the Federal Trade Commission (FTC), invalidating the FTC’s ban on non-compete agreements, which had been set to take effect on September 4, 2024. U.S. District Judge Ada Brown of the Northern District of Texas set aside the FTC’s ban on non-competes and held that it shall not be enforced or otherwise take effect nationwide.

“Today we prevail in protecting the very foundation of innovation that drives our economy from the overreach of the FTC in its misguided mission to invalidate millions of employment contracts,” said Ryan Chairman and CEO G. Brint Ryan. “Non-competes serve as a cornerstone of mutual trust between employer and employee. As a champion for our clients and business owners nationwide, Ryan stands proud in the role we’ve played to protect businesses’ intellectual property and ongoing investment in employee training and skill development.”  

Ryan’s lawsuit, filed within the hour after the FTC promulgated its ban on non-competes, challenged the FTC’s authority to issue such a rule, which imposes an extraordinary burden on business owners seeking to protect their IP and to retain talent within the professional services industry. The U.S. Chamber of Commerce, Business Round Table, Texas Association of Business, and Longview Chamber of Commerce joined the case shortly after it was filed, along with a vast array of organizations that filed briefs supporting Ryan’s position.

In her ruling, Judge Brown concluded that “the text and the structure of the FTC Act reveal the FTC lacks substantive rulemaking authority with respect to unfair methods of competition” and that “the Rule is arbitrary and capricious because it is unreasonably overbroad without a reasonable explanation.”  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.”

“Judge Brown’s ruling preserves the economic freedom of businesses and their employees to enter into non-compete agreements,” said John Smith, Ryan Chief Legal Officer and General Counsel. “They play a vital role in safeguarding intellectual property and innovation, building trust within businesses, and investing in training their people.”

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 https://ryan.com/canada-fr/.

PERSONNE-RESSOURCE POUR LES MÉDIAS

Melodie Elliott
Première directrice, contenu et communication marketing
Ryan
+1 972.934.0022
melodie.elliott@ryan.com