U.S. District Judge Blocks FTC Non-Compete Rule from Taking Effect
U.S. District Judge Ada Brown of the U.S. District Court for the Northern District of Texas barred the Federal Trade Commission’s (FTC) final rule banning non-compete agreements from taking effect. Brown said the FTC does not have the authority to ban practices it deems unfair methods of competition by adopting broad rules. The judge also said that even if the FTC had the power to adopt the rule, the agency had not justified banning virtually all non-compete agreements. The FTC said that the agency is disappointed with the ruling and is “seriously considering a potential appeal.”
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