Federal Judge Blocks FTC Rule on Non-Compete Agreements

SOURCE www.breitbart.com
A federal judge in Texas blocked the Federal Trade Commission's rule banning non-compete employment agreements, citing lack of authority and ruling it as unlawful. The ruling stops the ban from taking effect on Sept. 4, affecting around 30 million American workers.

Key Points

  • FTC's rule banning non-compete agreements blocked by U.S. District Judge Ada Brown
  • Around 30 million American workers affected by non-compete agreements
  • FTC Chair Lina Khan yet to issue a statement on the ruling

Pros

  • Protects the rights of businesses to impose non-compete agreements on employees
  • Maintains the status quo for millions of American workers

Cons

  • May limit job mobility and opportunities for workers
  • Could potentially lower wages for workers