FTC’s Bid To Ban Noncompete Agreements Rejected By Federal Judge In Texas

(Associated Press) – A federal judge in Texas has blocked a new rule from the Federal Trade Commission that would have made it easier for employees to quit a job and work for a competitor.

In a ruling Tuesday, U.S. District Judge Ada Brown granted a motion for summary judgement filed by the U.S. Chamber of Commerce and other plaintiffs, and rejected the FTC’s own petition for a judgement in its favor.

Brown concluded that that the FTC “exceeded its statutory authority” in making the rule, which was set to go into effect early next month.