A federal judge in Texas blocked a Federal Trade Commission rule that would have banned noncompete agreements. The judge, an appointee of Former President Donald Trump, said that the FTC lacks the authority to impose such a sweeping regulation. It aimed to prevent agreements restricting workers from joining rival companies or starting competing businesses. The FTC expressed disappointment and is considering an appeal, while business groups argue that the rule exceeds the FTC's powers. A federal judge in Florida blocked the FTC's noncompete ban, while a judge in Philadelphia previously upheld the FTC's reasoning that noncompetes are rarely justified.
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00:00It's Benzinga, and here's what's on the block.
00:02A federal judge in Texas blocked a Federal Trade Commission rule that would have banned
00:06non-compete agreements.
00:08The judge, an appointee of former President Donald Trump, said the FTC lacks the authority
00:12to impose such a sweeping regulation.
00:15It aimed to prevent agreements restricting workers from joining rival companies or starting
00:19competing businesses.
00:21The FTC expressed disappointment and is considering an appeal, while business groups argue that
00:25the rule exceeds the FTC's powers.
00:28A federal judge in Florida blocked the FTC's non-compete ban, while a judge in Philadelphia
00:32previously upheld the FTC's reasoning that non-competes are rarely justified.
00:36For all things money, visit Benzinga.com.