Second Judge Blocks FTC Non-Compete Rule
A federal judge in Florida temporarily blocked the Federal Trade Commission’s final rule banning non-compete agreements that is set to go into effect on September 4, 2024. U.S. District Judge Timothy Corrigan of the Middle District of Florida blocked the FTC rule from applying to real estate developer Properties of the Villages, pending the outcome of the company’s lawsuit claiming the FTC lacked the power to adopt a non-compete ban earlier this year. Corrigan cited the “major questions doctrine,” a legal theory that says federal agencies can only issue rules with societal impacts with Congress’ explicit permission. The FTC said that the limited nature of Corrigan’s ruling meant the non-compete ban will still go into effect for most Americans on September 4, 2024. The ruling comes after a federal judge in Texas last month blocked the FTC from enforcing the non-compete rule against a coalition of business groups, including the U.S. Chamber of Commerce, and tax service firm Ryan and after a separate ruling from a judge in Philadelphia upheld the FTC’s authority to issue the rule in a lawsuit from a tree-trimming service.
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