In a highly-anticipated federal ruling on July 3, US District Court Judge Ada Brown determined that the US Federal Trade Commission (FTC) did not have the authority to issue a nationwide ban of non-compete agreements. Although the judge’s decision was preliminary, employment lawyers watching the case agree that the FTC non-compete move is effectively dead.
Brown, of the US District Court for the Northern District of Texas, said that she would issue a final ruling on Aug. 30, the day before the FTC ban was slated to take effect. But based on the strong wording of her preliminary decision, there seemed little doubt that she would ultimately block the ban.
