Federal Judge Blocks FTC's Noncompete Ban, Casting Uncertainty on Worker Protections

The preliminary ruling challenges the FTC's authority, with a final decision expected by the end of August.

Nearly 30 million American workers are affected by noncompete agreements, which limit job mobility and suppress wages.
The FTC's proposed rule aimed to ban new noncompetes and void existing ones, except for senior executives.
Judge Ada Brown's ruling follows a lawsuit by business groups arguing the FTC overstepped its authority.
The decision is influenced by the recent Supreme Court ruling reducing deference to federal agencies.
States will continue to have varied regulations on noncompetes, leading to a patchwork of enforcement across the country.