Third case challenging FTC’s noncompete rule

There is now a third case challenging the FTC’s noncompete rule.

Yesterday (April 25), a company called ATS Tree Services, LLC filed a lawsuit against the FTC and its five members (in their official capacities) in the United States District Court for the Eastern District of Pennsylvania.

One might question the wisdom of filing in the Eastern District of Pennsylvania if your goal is to invalidate the FTC’s noncompete rule as a lack or abuse of agency authority, but we shall see. Maybe it is intended to set up a split for a quick(er) trip to the Supreme Court?

Regardless, there is not yet a motion on the docket seeking a stay of the rule’s operation or seeking an injunction against its enforcement. That will be coming soon, I’m sure.

In the meantime, keep an eye on the U.S. Chamber’s case, as the briefing schedule is getting set now. Assuming the pending unopposed scheduling motion is granted (a safe bet), the FTC’s opposition will be due on May 15 and the Chamber’s reply brief will be due on May 28. Based on that briefing schedule, there will likely be a hearing on the motion to stay or enjoin the FTC’s noncompete rule in early June.

We’ll keep you posted.