Federal Judge Temporarily Halts FTC Noncompete Ban

The ruling delays the nationwide prohibition on noncompete agreements, pending a final decision by August 30.

Judge Ada Brown issued a preliminary injunction against the FTC's ban on noncompete agreements.
The FTC argues that noncompetes suppress wages and inhibit economic growth, while business groups claim they protect trade secrets.
The ruling currently applies only to the plaintiffs involved in the case, including tax firm Ryan LLC and the U.S. Chamber of Commerce.
The FTC's ban, approved in April, was set to take effect on September 4 and could impact up to 30 million U.S. workers.
A final court decision on the legality of the FTC's rule is expected by the end of August.