Texas Judge Blocks Biden Administration's Nationwide Noncompete Ban Set for September

Aug 21, 2024, 11:11 AM

A federal judge in Texas has blocked the Biden administration's Federal Trade Commission (FTC) rule banning noncompete agreements nationwide, which was set to take effect on September 4, 2024. The judge, Ada Brown, a Trump appointee, ruled that the FTC lacked the authority to enforce such a ban, deeming it 'arbitrary and capricious.' This decision halts the FTC's efforts to prohibit noncompete clauses that prevent employees from working for competitors after leaving a job. The ruling impacts an estimated 30 million American workers who are currently bound by such agreements. The White House has expressed support for the FTC's rule, highlighting its potential to enhance worker mobility and increase wages by nearly $200 billion over the next decade. The FTC is considering an appeal against the decision.