Federal Trade Commission Files to Accede to Vacatur of Non-Compete Clause Rule

Today the Federal Trade Commission took steps to dismiss its appeals in Ryan, LLC v. FTC, No. 24-10951 (5th Cir.), and Properties of the Villages v. FTC, No. 24-13102 (11th Cir.), and to accede to the vacatur of the Non-Compete Clause Rule. 

At the time the Biden FTC issued the Rule, current Chairman Andrew N. Ferguson and Commissioner Melissa Holyoak dissented on the grounds that the FTC lacked the statutory authority to issue the Rule. The district court found that the FTC does lack the authority, and prohibited enforcement of the Rule. 

The Commission voted 3-1 to dismiss the appeal and accede to the vacatur. Chairman Andrew N. Ferguson issued a statement joined by Commissioner Melissa Holyoak. Commissioner Mark R. Meador issued a concurring statement. Commissioner Rebecca Slaughter issued a dissenting statement.