A federal judge in Pennsylvania upheld the Federal Trade Commission's ban on noncompete agreements, allowing the rule to take effect on Sept. 4, affecting one in five American workers.
Business groups sued to block the ban, citing concerns about trade secrets; however, Judge Kelley Brisbon Hodge ruled that the company did not demonstrate irreparable harm from the rule.
F.T.C. representative Douglas Farrar stated that noncompete clauses harm competition by restricting workers' mobility and impeding economic growth.
ATS's lawyer, Josh Robbins, expressed disappointment in the ruling and indicated the firm's intention to continue opposing the F.T.C.'s actions.
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