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The FTC’s ban against noncompete agreements may be under threat

The ban had been set to go into effect in September.

The ban had been set to go into force on September 4th, but on Wednesday, Judge Ada Brown issued a preliminary injunction in a lawsuit brought against the FTC. Tax firm Ryan LLC filed the lawsuit against the FTC the same day the ban was announced in April, arguing that the ban is “an unauthorized, unconstitutional attempt to eliminate a long-established private economic arrangement.” The US Chamber of Commerce and Business Roundtable are among those who have joined the suit since its filing. The plaintiffs are “substantially likely to prevail on the merits of their challenge to the FTC’s Non-Compete Rule,” Brown writes in the preliminary injunction.

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