A federal judge on Tuesday blocked the FTC’s controversial ban on noncompete agreements. The judge’s ruling ends months of speculation and prevents the FTC’s near-total ban on noncompete agreements from taking effect as planned on September 4.
Tuesday’s ruling came from US District Judge Ada Brown in connection with a case filed in Dallas by the US Chamber of Commerce. Judge Brown ruled that the FTC’s ban was “unreasonably overbroad” and that the FTC lacked the authority to enact it.
The FTC may appeal Tuesday’s ruling, but its noncompete ban will almost certainly remain blocked in the meantime.
The Labor and Employment Practice Group at Frantz Ward will continue to monitor this situation closely. If you have questions about this or other labor and employment law issues, contact Brian Kelly or another member of the group.