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The FTC’s noncompete agreements ban has been struck down


The judge said the rule was “unreasonably overbroad.”

The ruling prevents the FTC’s ban on noncompete agreements from taking effect on September 4th, though the agency could still appeal the decision. “We are disappointed by Judge Brown’s decision and will keep fighting to stop noncompetes that restrict the economic liberty of hardworking Americans, hamper economic growth, limit innovation, and depress wages,” FTC spokesperson Victoria Graham said in a statement to The Verge. The ruling upholds a lawsuit that Tax firm Ryan LLC filed in April — later backed by the US Chamber of Commerce and Business Roundtable — to challenge the noncompete agreements ban, arguing that it would make it difficult for companies to retain talent.

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