Texas Judge Blocks FTC's Nationwide Noncompete Ban

Aug 20, 2024, 09:40 PM

A federal judge in Texas has permanently blocked the Federal Trade Commission's (FTC) rule banning noncompete agreements, which was set to take effect on September 4, 2024. The ruling, issued by U.S. District Judge Ada Brown, a Trump appointee, found that the FTC lacked the authority to enact such a regulation, deeming it beyond the agency's jurisdiction. This decision follows a series of legal challenges against the FTC's rule, which aimed to prohibit agreements that prevent workers from joining competitors or starting similar businesses. The ruling was issued as a nationwide order. The FTC's initiative was part of a broader effort to enhance labor market competition and potentially increase wages by nearly $200 billion over the next decade. However, the court's decision now leaves the future of the rule uncertain.