Federal Trade Commission (FTC) barred non-competes in Aprilsaying the agreements — which prevent a company's employees from working for competitors or starting rival firms for a certain amount of time after their employment ends — depressed wages and stopped Americans from starting new businesses.

Now, a US district judge in Dallas is blocking the ban, about two weeks before it was due to take effect on September 4.

^{FTC Chair Lina Khan. Photo: Tom Williams/CQ-Roll Call, Inc via Getty Images}

U.S. District Judge Ada Brown in Dallas ruled on Tuesday that the FTC lacked the authority to ban noncompetes, making the April rule “an unlawful agency action.” REFEREE it is called the rule “arbitrary and capricious” in its ruling and said the FTC did not prove why they wanted “a blanket ban” on non-competes rather than specific bans on torts.

This means that the non-compete will not apply nationwide. Not competitors influence about 30 million Americansaccording to the FTC.

The FTC said it was “disappointed” by the decision.

“We are seriously considering a possible appeal,” DECLARING an FTC spokesman.

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The judge sided with the plaintiffs, including the U.S. Chamber of Commerce, the Business Roundtable and Ryan LLC, a tax law firm. They sued the FTC on April 23, the same day the commission announced a non-compete ban.

“The Federal Trade Commission's decision to ban employer non-compete agreements across the economy is not only illegal, but a flagrant usurpation of power that will harm the ability of American businesses to remain competitive,” the president and CEO of US Chamber of Commerce, Suzanne P. Clark. DECLARING at that time.

The room said that noncompetes could help businesses protect their investments in worker training, research and development, and that it was resisting “government micromanagement” by challenging the rule.

The FTC, on the other hand, stated that the non-compete ban would open up new opportunities for American workers and lead to 8,500 new businesses a year.

According to FTC Ratings.

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