FTC

Judge Hits Pause on FTC’s Non-Compete Ban

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

Ted Hearn

Jul 5, 2024 — 2 min read

Screenshot of U.S. Judge Ada Brown, from Choctaw Nation of Oklahoma Facebook page

WASHINGTON, July 5, 2024 – A 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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