On Tuesday, a federal judge in Texas struck down the Federal Trade Commission's (FTC) ban on noncompete agreements, claiming the agency exceeded its authority with a rule that would have voided contracts that bar workers from moving to rival employers.
In a 27-page opinion, Judge Ada Brown found that the FTC lacked the statutory authority to issue the rule, which would have taken effect Sept. 4. In reaching her decision, Brown wrote that the "FTC's promulgation of the rule is an unlawful agency action."
An estimated 30 million U.S. workers in a wide range of fields are subject to noncompete agreements.
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