A United States federal judge blocked the Federal Trade Commission's (FTC) ban on noncompete agreements from taking effect as planned in September.
US District Judge Ada Brown in Dallas ruled that the FTC overstepped its authority with the rule, which aimed to prevent employers from restricting workers from joining apparent competitors or starting rival businesses. The FTC's decision to ban most noncompete agreements, part of a broader effort to address anticompetitive practices, faced significant opposition from business groups.
According to the New York Times, the FTC expressed disappointment with the decision and is considering an appeal.
