Trump-Appointed Judge in Texas Blocks FTC's Noncompete Ban Citing Lack of Authority

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.