Our recent Client Alert discusses the decision on August 20, 2024, by a federal district court in Texas blocking the final rule issued by the Federal Trade Commission that would have prohibited all for-profit employers nationwide from using non-compete agreements with most workers. The final rule was set to take effect on September 4, 2024, and would have required employers to send notices to all current and former workers who had entered into covered non-compete agreements informing them that their covenants not to compete would not be enforced. The court’s decision set aside the final rule and ordered that it not be enforced or otherwise take effect on a nationwide basis. As a result of the Texas district court’s ruling, employers are relieved of the obligation to notify workers that their covenants not to compete are unenforceable. Employers also may continue to enter into and enforce noncompetition agreements with workers as permitted by applicable state law. However, given the conflicting rulings among various courts and the uncertainty regarding the ultimate determination of the final rule’s enforceability, employers should continue to consider alternative options for protecting non-public, competitively sensitive information.