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Texas judge blocks the FTC from enforcing its ban on noncompete agreements

According to The Washington Post, US District Judge Ada Brown has determined that the agency doesn't have the authority to enforce the rule.

FTC Chair Lina M. Khan explained that "noncompete clauses keep wages low, suppress new ideas, and rob the American economy of dynamism" when the agency voted 3-2 in favor of the ban. Noncompete agreements are widely used in the tech industry, and preventing companies from adding them to contracts would mean that workers will be able to freely move to a new job or start a business in the same field. In July, Brown temporarily blocked the rule's enforcement to assess the lawsuit filed by Dallas tax services firm Ryan LLC mere hours after the FTC announced the ban.

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