FTC Ban On Noncompete Agreements Blocked By Judge
The FTC’s ban on noncompete agreements – which was to take effect for tens of millions of Americans nationwide on September 4 – is now permanently on hold. In a ruling Tuesday, a federal judge in Texas upheld a challenge to the FTC’s rule banning noncompetes. US District Judge Ada Brown said the government agency lacks the authority to put the ban into effect. An estimated 30 million Americans – 1 out of every 5 workers – work within noncompete agreements in industries ranging from tech to fast food. The FTC argues the agreements stifle workers’ ability to switch jobs and earn higher wages. The rule would have meant that anyone applying for a new job could not be forced to sign a noncompete. Also, for workers with existing agreements, noncompetes would no longer be enforceable. This rule was first proposed in January 2023, with many employees speaking in favor of the proposal. The FTC said it expected the ban to increase workers’ wages by up to $488 billion over the next de...