The Federal Trade Commission's controversial ban on noncompete agreements is getting competing receptions in federal court.

A Pennsylvania federal district court recently ruled that the FTC acted within its authority in adopting the noncompete rule—contrasting a Texas federal district court’s July decision granting a partial stay of enforcement of the noncompete rule for certain named parties.

Then, on Wednesday, a Florida federal judge became the second to temporarily block the ban from applying to a plaintiff while their challenge plays out against the FTC.

A final ruling in the Texas case is expected by no later than August 30th. While other litigation challenging the rule is still pending, the federal noncompete ban is currently scheduled to become effective on September 4th.

For more information about preparation for compliance with the FTC’s noncompete rule, please see our client alert. We will continue to monitor and report on further developments regarding the status of the rule.

This article is part of Fenwick's monthly "Securities Law Update" that was authored by David A. Bell, Ran Ben-Tzur, Amanda Rose, and Merritt Steele.