Ryan, LLC v. Federal Trade Commission

In 2024, the Federal Trade Commission (FTC) found that non-compete clauses in employment contracts are unfair methods of competition and issued a rule restricting use of noncompete clauses. A company called Ryan, LLC filed suit challenging the rule on several grounds, and the Chamber of Commerce and other business associations intervened to challenge the rule as well.

Ryan and the intervenors then moved to stay the rule’s September 2024 effective date and to preliminarily enjoin the enforcement of the rule. Public Citizen, joined by National Employment Law Project (NELP), filed an amicus brief in support of the FTC. The district court, however, granted the motions, limited the injunction to the plaintiff and intervenor-plaintiffs only. Ryan and the intervenors then filed cross-motions for summary judgment, and Public Citizen and NELP again filed an amicus brief in support of the FTC. In a decision issued in August 2024,  however, the district court granted the plaintiffs’ motions for summary judgment and set aside the rule.

The FTC appealed the district court’s summary judgment decision. Public Citizen and NELP filed an amicus brief in support of the FTC. The brief explains that the rule has a strong basis in the record, which shows that noncompete provisions lower wages and reduce job mobility, and are often imposed on workers without meaningful consent. The brief also explains that the FTC’s issuance of the Rule is within the FTC’s statutory authority under the FTC Act.

Public Citizen and NELP also filed amicus briefs in similar cases in Pennsylvania and Florida.