{"id":5058,"date":"2024-08-21T13:50:24","date_gmt":"2024-08-21T18:50:24","guid":{"rendered":"https:\/\/niada.com\/dashboard\/?p=5058"},"modified":"2024-09-19T15:24:51","modified_gmt":"2024-09-19T20:24:51","slug":"judge-stops-ftcs-ban-on-noncompete-agreements","status":"publish","type":"post","link":"https:\/\/niada.com\/dashboard\/judge-stops-ftcs-ban-on-noncompete-agreements\/","title":{"rendered":"Judge stops FTC&#8217;s ban on noncompete agreements"},"content":{"rendered":"\n<p>The Federal Trade Commission\u2019s ban on noncompete agreements was blocked Tuesday in a U.S. District Court.<\/p>\n\n\n\n<p>The FTC ban was to go into effect Sept. 4.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.documentcloud.org\/documents\/25052724-ryan-v-ftc-opinion\" target=\"_blank\" rel=\"noopener\">In a 27-page judgment, Judge Ada Brown of the U.S. District Court for North Texas<\/a> ruled the FTC lacked the statutory authority to issue the ban and that the rule was arbitrary.<\/p>\n\n\n\n<p>\u201cThe rule imposes a one-size-fits-all approach with no end date, which fails to establish a rational connection between the facts and the choice made,\u201d Brown wrote in his decision.<\/p>\n\n\n\n<p>The decision also stated that the commission relied on \u201ca handful of studies that examined the economic effects of various state policies toward noncompetes.\u201d<\/p>\n\n\n\n<p>The decision from Brown followed her previous order partially halting the enforcement of the Federal Trade Commission\u2019s ban on non-compete clauses.<\/p>\n\n\n\n<p>The FTC proposed the rule in January 2023 and received more than 26,000 comments.<\/p>\n\n\n\n<p>In February 2023, the U.S. Chamber of Commerce sent a letter to U.S. congressmen in opposition to the proposed rule. NIADA signed the letter, joining dozens of other federal, regional and state associations, in opposition. The\u00a0<a href=\"https:\/\/www.uschamber.com\/finance\/antitrust\/coalition-letter-to-congress-on-the-ftcs-proposed-rule-on-non-compete-agreements\" target=\"_blank\" rel=\"noopener\">letter questioned the FTC\u2019s<\/a>\u00a0authority to issue the ban and raised concern about the impact on the industry.<\/p>\n\n\n\n<p>The FTC announced its final rule banning non-competes in April. Under the rule, existing non-competes for senior executives can only be enforced for employees earning more than $151,164 and in \u201cpolicy-making\u201d positions. The ban does not eliminate trade secret regulations and non-disclosure agreements.<\/p>\n\n\n\n<p>The U.S. Chamber of Commerce, Business Roundtable, Ryan LLC, Texas Association of Business and Longview Chamber of Commerce had challenged the ban.<\/p>\n","protected":false},"excerpt":{"rendered":"The Federal Trade Commission\u2019s ban on noncompete agreements was blocked Tuesday in a U.S. District Court. The FTC&hellip;\n","protected":false},"author":68,"featured_media":5059,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"csco_singular_sidebar":"","csco_page_header_type":"","csco_appearance_grid":"","csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[39,3,54],"tags":[],"class_list":{"0":"post-5058","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-compliance","8":"category-industry","9":"category-legislative","10":"cs-entry","11":"cs-video-wrap"},"_links":{"self":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/posts\/5058","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/users\/68"}],"replies":[{"embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/comments?post=5058"}],"version-history":[{"count":0,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/posts\/5058\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/media\/5059"}],"wp:attachment":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/media?parent=5058"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/categories?post=5058"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/tags?post=5058"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}