A federal judge has blocked the Federal Trade Commission’s ban on noncompete agreements that make it difficult for workers to join their employers’ rivals or launch competing businesses. The ruling prevents the FTC’s ban on noncompete agreements from taking effect on September 4th, though the agency could still appeal the decision.
On Tuesday, US District Judge Ada Brown in Dallas, Texas ruled that the antitrust agency exceeded its statutory authority to ban practices related to unfair methods of competition, saying the noncompete agreements ban is “unreasonably overbroad without a reasonable explanation,” and would “cause irreparable harm.” Brown’s decision now stops the FTC from blocking noncompetes nationwide after initially delaying...
