Federal judge throws out U.S. ban on noncompetes
A Texas federal judge overturned the U.S. government's ban on noncompete agreements, stating the FTC exceeded its authority. The ruling allows businesses to maintain these agreements, impacting 30 million workers.
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A federal judge in Texas has overturned the U.S. government's ban on noncompete agreements, which was scheduled to take effect on September 4. Judge Ada Brown of the U.S. District Court for the Northern District of Texas ruled that the Federal Trade Commission (FTC) exceeded its authority in implementing the ban, stating that the agency's role is to follow congressional directives rather than act independently. The lawsuit against the ban was initiated by Ryan LLC, a tax services firm, and supported by various business organizations, arguing that the ban would harm their operations and compromise confidential information. The FTC, which has long contended that noncompete agreements restrict workers' mobility and wage potential, expressed disappointment with the ruling and is considering an appeal. The ban was expected to benefit around 30 million U.S. workers by allowing them to change jobs without legal repercussions, potentially leading to significant wage increases and new business creation. The ruling preserves the ability of businesses and employees to enter into noncompete agreements, which proponents argue are essential for protecting intellectual property and fostering trust within companies.
- A federal judge in Texas has struck down the U.S. ban on noncompete agreements.
- The FTC is considering an appeal against the ruling.
- The ban was expected to benefit approximately 30 million workers.
- Noncompete agreements are argued to restrict job mobility and wage growth.
- The ruling allows businesses to continue using noncompete agreements to protect their interests.
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Federal judge partially blocks U.S. ban on noncompetes
A federal judge in Texas partially blocks the U.S. government's ban on noncompete agreements, citing harm to businesses. The ruling delays the ban's enforcement for plaintiffs, questioning the FTC's authority. Noncompete debate continues between job flexibility advocates and confidentiality protection supporters.
Federal judge partially blocks U.S. ban on noncompetes
A federal judge in Texas partially blocked the U.S. government's ban on noncompete agreements, citing plaintiffs' likelihood of success and public interest. The FTC's ban aimed to enhance job mobility and competition.
Judge says FTC lacks authority to issue rule banning noncompete agreements
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US judge throws out FTC's ban on non-compete agreements
A US District Judge overturned the FTC's ban on non-compete agreements, citing lack of authority, affecting 30 million workers. The Biden administration supports the FTC's efforts to limit such agreements.
Federal judge in Texas strikes down FTC's ban on noncompete agreements
A Texas federal judge has blocked the FTC's ban on noncompete agreements, ruling the agency lacks authority. The FTC plans to appeal, claiming the ban is essential for fair competition.