Judge Hits Pause on FTC’s Non-Compete Ban

Judge says Congress did not authorize the FTC to ban non-compete agreements.

Judge Hits Pause on FTC’s Non-Compete Ban
Screenshot of U.S. Judge Ada Brown, from Choctaw Nation of Oklahoma Facebook page

WASHINGTON, July 5, 2024A federal judge in Texas on Wednesday barred the Federal Trade Commission from enforcing a ban on non-compete clauses in employment agreements that reportedly cover 30 million American workers. 

U.S. District Judge Ada Brown said the FTC has not received statutory authority from Congress to adopt such a ban as an unfair method of competition under Section 6(g) of the Federal Trade Commission Act. 

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