The federal judge ruled that the FTC lacked authority to implement a ban on noncompete agreements, blocking the rule which aimed to enhance worker mobility and earnings.
Judge Brown’s ruling emphasizes that the FTC overstepped its mandate, arguing that the agency cannot create rules on unfair competition methods without explicit legislative backing.
Victoria Graham emphasized the FTC's disappointment, outlining attempts to counteract the ruling through potential appeals and continued case-by-case enforcement against noncompete agreements.
The ongoing debate reflects broader concerns about the impact of noncompete agreements on workers’ rights and the need for economic growth and innovation through increased labor market mobility.
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