Texas Federal Judge Temporarily Blocks FTC's Ban on Noncompete Agreements

Jul 3, 2024, 09:08 PM

A federal judge in Texas has temporarily blocked the Biden administration's US Federal Trade Commission (FTC) rule banning noncompete agreements, which was set to take effect on September 4. The decision, made on Wednesday, delays the implementation of the near-total ban on these agreements, which are commonly signed by workers to prevent them from joining their employers' rivals or launching competing businesses. The ruling is part of a legal challenge brought by tax preparation company Ryan LLC and the U.S. Chamber of Commerce, marking the beginning of a high-stakes legal battle over worker mobility within industries.