Judge Blocks Ban on Worker 'Noncompete' Agreements
Summary from the AllSides News Team
On Tuesday, a federal judge in Texas blocked a Federal Trade Commission (FTC) rule that would ban agreements that workers commonly sign not to launch competing businesses or join their employers' rivals.
Key Details: Judge Ada Brown ruled that the FTC does not have the authority to enact noncompete agreements after the ruling was challenged by the U.S. Chamber of Commerce, tax firm Ryan LLC, and other plaintiffs. Back in July, Brown temporarily backed the challenge to the rule. The FTC's noncompete ban was set to take effect September 4.
Key Quotes: Brown said "the Commission’s lack of evidence as to why they chose to impose such a sweeping prohibition" renders it "arbitrary and capricious." FTC spokesperson Victoria Graham said the agency "will keep fighting to stop noncompetes that restrict the economic liberty of hardworking Americans, hamper economic growth, limit innovation, and depress wages.”
For Context: FTC Chair Lina Khan, a Biden appointee who has embraced the noncompete policy, has been accused by critics of meddling with market outcomes and abusing the FTC's authority.
How the Media Covered it: National Review News (Lean Right bias) called it a "major blow to Biden Admin’s anti-business campaign." The Huffington Post (Left bias) noted that Brown was appointed by former President Donald Trump.
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Judge Tosses FTC Ban on Noncompete Agreements, Dealing Major Blow to Biden Admin’s Anti-Business Campaign
A federal judge on Tuesday struck down a Federal Trade Commission rule banning employers from offering workers contracts meant to prevent them from joining competitors or launching startups, dealing a significant blow to the Biden administration’s efforts to rein in employment practices that progressives view as unfair toward workers.
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A federal judge in Texas has blocked the Federal Trade Commission from moving forward with its ban on noncompete agreements, jeopardizing a major reform pursued by President Joe Biden.
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From the Center
US judge strikes down Biden administration ban on worker 'noncompete' agreements
A federal judge in Texas on Tuesday barred a U.S. Federal Trade Commission rule from taking effect that would ban agreements commonly signed by workers not to join their employers' rivals or launch competing businesses.
U.S. District Judge Ada Brown in Dallas said the FTC, which enforces federal antitrust laws, does not have the authority to ban practices it deems unfair methods of competition by adopting broad rules.
Brown had temporarily blocked the rule in July while she considered a bid by the U.S. Chamber of Commerce, the country's largest business lobby,...
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