Judge Upholds Challenge to FTC Non-Compete Ban, At Least For Now
A federal judge on Wednesday upheld the first legal challenge to the Federal Trade Commission’s ban on noncompete agreements, which is scheduled to take effect in September.Judge Ada Brown granted an injunction sought by several plaintiffs, saying the ban cannot be enforced against them pending a final ruling.But while the ruling was preliminary, it said the FTC had no “substantive authority to issue regulations” regarding unfair competition practices and that the plaintiffs “would likely succeed on the merits” of their challenge.Judge Brown of the U.S. District Court for the Northern District of Texas said he expects to issue a final decision by the end of August.The commission “supports our clear authority, supported by statute and precedent, to issue this rule,” said Douglas Farrar, a s...