On Aug. 20, Judge Ada Brown of the U.S. District Court for the Northern District of Texas ruled that the Federal Trade Commission (FTC) lacks the legal authority to implement its “noncompete” rule.
Roughly 30 million people, or 20% of U.S. workers, have signed noncompete agreements, according to the FTC.
“We are seriously considering a potential appeal, and today’s decision does not prevent the FTC from addressing noncompetes through case-by-case enforcement actions,” wrote FTC spokesperson Victoria Graham in a statement.
This leaves open the possibility of further review by higher courts. But, for now, there is a reprieve and the rule is not enforceable.
Click here to read more about the ruling. Questions? Contact TRSA’s Vice President of Government Relations Kevin Schwalb at kschwalb@trsa.org.
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