FTC Ban on Worker Noncompete Agreements Delayed by Judge
- Judge says business groups likely win challenge to FTC rule
- Agency claims noncompetes unfairly restrict worker mobility
A federal judge delayed implementation of the US Federal Trade Commission’s near-total ban on noncompete agreements, the first salvo in the high-stakes legal fight over how much freedom workers should have to switch jobs within an industry.
US District Judge Ada Brown in Dallas sided with the US Chamber of Commerce and a Texas-based tax firm that claimed in a lawsuit the agency lacks authority to craft rules defining unfair methods of competition. The groups warned the unprecedented rule would invalidate 30 million employment contracts in a move that “amounts to a vast overhaul of the national economy.”