Federal judge throws out U.S. ban on noncompetes
NPRFederal judge throws out U.S. ban on noncompetes toggle caption Kevin Dietsch/Getty Images A federal court in Texas has thrown out the government’s ban on noncompete agreements that was set to take effect September 4. "The role of an administrative agency is to do as told by Congress, not to do what the agency think it should do.” Ryan LLC, a tax services firm in Dallas, had sued to block the rule just hours after the Federal Trade Commission voted narrowly to ban noncompetes for almost all U.S. workers back in April. "We are seriously considering a potential appeal, and today’s decision does not prevent the FTC from addressing noncompetes through case-by-case enforcement actions," wrote FTC spokesperson Victoria Graham in a statement. In requesting relief, Ryan, the tax services firm, had argued that the ban on noncompetes would inflict "serious and irreparable injuries" on its business, including by putting its confidential information at risk and enabling its competitors to poach valuable employees, whose knowledge and training would go out the door.
History of this topic
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Millions of workers are subject to noncompete agreements. They could soon be banned
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