FTC Ban on Worker Noncompete Deals Blocked by Federal Judge (2)

A federal judge blocked the US Federal Trade Commission's near-total ban on noncompete agreements, which was set to take effect next month. US District Judge Ada Brown in Dallas sided with the US Chamber of Commerce and a Texas-based tax firm that sued to prevent the measure, stating that the FTC lacked the authority and that the ban was "unreasonably overbroad without a reasonable explanation." This decision is a significant setback for the FTC and adds to the judicial divide on the regulator's powers. The FTC is considering an appeal. The case is among three lawsuits challenging the rule, with varying outcomes in other states. For more information, click here.