Federal Judge Blocks FTC's Noncompete Ban

Ruling halts nationwide enforcement of FTC's rule, citing agency overreach and lack of authority.

Judge Ada Brown ruled the FTC exceeded its statutory authority in banning noncompete agreements.
The FTC's ban was set to take effect on September 4, impacting around 30 million workers.
Business groups argue noncompetes protect trade secrets and investments in employee training.
The FTC is considering an appeal but can still pursue case-by-case enforcement.
Diverging court rulings suggest the issue may ultimately be decided by the Supreme Court.