Noncompete Ban Blocked

(July, 2024) A U.S. District Court judge in the Northern District of Texas recently blocked the Federal Trade Commission’s (FTC) ban on noncompete agreements for most employees. The court plans to rule on the case’s merits by August 30.

U.S. District Court Judge Ada Brown in Dallas said in a written decision that the FTC, which enforces federal antitrust laws, lacked the power to adopt broad rules prohibiting practices that it deems unfair methods of competition. Roughly 30 million people, or 20% of U.S. workers, have signed noncompete agreements, according to the FTC.