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Federal Judge Strikes Down Ban On Worker 'Noncompete' Agreements

U.S. District Judge Ada Brown in Dallas blocked the FTC's rule banning noncompete agreements, arguing the FTC lacks authority to implement such broad regulations and did not adequately justify the sweeping prohibition. Reuters reports: Brown had temporarily blocked the rule in July while she consid...

Reuters reports: Brown had temporarily blocked the rule in July while she considered a bid by the U.S. Chamber of Commerce, the country's largest business lobby, and tax service firm Ryan to strike it down entirely. "The Commission's lack of evidence as to why they chose to impose such a sweeping prohibition ... instead of targeting specific, harmful non-competes, renders the Rule arbitrary and capricious," wrote Brown, an appointee of Republican former President Donald Trump. The commission and supporters of the rule say the agreements are an unfair restraint on competition that violate U.S. antitrust law and suppress workers' wages and mobility.

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