Judge delays ban on noncompete agreements for employees
A federal judge delays noncompete ban for select employers, questioning FTC's authority. The ban aims to prevent job restrictions, but faces opposition from US Chamber of Commerce. Efforts ongoing to block ban nationwide.
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A federal judge has temporarily delayed the implementation of a ban on noncompete agreements for a limited number of employers, set to take effect on September 4. The ban, approved by the Federal Trade Commission in April, aims to prevent companies from enforcing noncompete clauses in existing employment agreements and including them in future ones. The judge's order only applies to specific plaintiffs and intervenors, not extending to their member companies. While the court questions the FTC's authority to issue such a ban, it has not issued a nationwide injunction at this time. The FTC argues that noncompete agreements restrict job mobility, lower wages, hinder innovation, and impede fair competition. The US Chamber of Commerce views the limited injunction as a victory against what they consider an overreach by the FTC. Efforts are expected to continue to persuade the judge to block the ban nationwide before the final ruling deadline in August.
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The judge only seems to have delayed the ban for the US Chamber of Commerce, the Business Roundtable, the Texas Association of Business, and the Longview Chamber of Commerce, but not for the companies that they represent.
This limited injunction seems a little strange by reading just the article.
> Wednesday’s order limits the preliminary injunction to just the plaintiff (Ryan LLC) and the plaintiffs-intervenors, which are the US Chamber of Commerce, the Business Roundtable, the Texas Association of Business and the Longview Chamber of Commerce. However, it doesn’t extend to the member companies of those groups. “[T]he Court declines to extend injunctive relief to members of Plaintiff-Intervenors,” the judge wrote.
> Even though the court indicates that it believes the FTC lacks the rulemaking authority to issue a noncompete ban, the judge declined to issue a nationwide ban for now, Coleman said.
NOTE: I am unable to edit the caption, to reflect the updated CNN headline, @dang?
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