Federal Judge Blocks Nationwide Ban On Non-Compete Agreements

The FTC said they will keep fighting and will look towards a next step of appealing the decision.

A federal judge has now blocked the nationwide ban on non-compete agreements from taking effect.

Back in April, the Federal Trade Commission voted to ban most non-compete agreements. That move would prevent millions of employees from leaving their jobs to work for competitors or start a competing business.

Several business groups sued to block the ban from going into effect. The plaintiffs alleged agency overreach that would make it harder for companies to retain talent.

A judge has now ruled the FTC overstepped its statutory authority. The win reportedly “preserves the validity of millions of employment contracts across the nation that facilitate trust between employers and employees.”

The FTC said they will keep fighting and will look towards a next step of appealing the decision. The ban was set to take effect on September 4.