On September 4 , a new Federal Trade Commission ( FTC ) linguistic rule was do to take gist that would bannon - compete clauses . America was a few week away from a humankind where no employer could restrict employees from taking a Book of Job with a competitor , but that did n’t go on . On Tuesday , a federal justice blocked the ban from take place .
The FTC had been studying the issue of non - competes for years . It first nominate a rule against them in 2023 and announced anofficial ban in April .
“ Non - compete clauses keep wages low , suppress new ideas , and hook the American economy of dynamism , including from the more than 8,500 young startups that would be created a class once noncompetes are banned , ” FTC Chair Lina M. Khansaid at the meter . “ The FTC ’s net rule to shun non - competes will ensure Americans have the freedom to act on a new task , start a new concern , or fetch a novel melodic theme to market . ”
The Federal Trade Commission headquarters in Washington, DC.© Ting Shen/Bloomberg via Getty Images
The rule was set to take effect 120 days after it had been entered into the Federal Register and would nullify existing noncompetes . The U.S. Chamber of Commerce was aggressively against the Bachelor of Arts in Nursing and promise to take effectual action .
The Chamber find willing plaintiffs in Texas where Judge Ada Brown of the U.S. District Court for the Northern District of Texas ruled in its favour .
“ The courtyard set aside the Non - Compete Rule … and the Rule shall not be implement or otherwise take effect on September 4 , 2024 , or thereafter , ” Brown said in herbrief opinion .
The Chamber called it a victory for business possessor .
“ This decision is a significant win in the Chamber ’s fighting against governing micromanagement of business decisions . A wholesale prohibition of noncompete agreements by the FTC was an unconventional extension of power that would have put American workers , businesses , and our economy at a competitory disadvantage , ” the Chamber of Commercesaid in a statementon its website . “ We remain committed to holding the FTC — and all agencies — accountable to the rule of law , guarantee American workers and businesses can expand . ”
The FTC say it might appeal the ruling . “ We are disappointed by Judge Brown ’s determination and will keep struggle to check noncompetes that limit the economic impropriety of hardworking Americans , hamper economic growth , circumscribe innovation , and depress wages . We are seriously consider a potential appeal , ” the FTCtold the Verge .
The noncompete opinion fall as the FTC and Khan face increasing opposition from corporations . Khan has done something the FTC has n’t in age — undertake to practice the Union organic structure to baffle industriousness that have bask a laissez - faire approach to job for generation .
FTCnoncompetesregulation
Daily Newsletter
Get the ripe tech , science , and polish news in your inbox daily .
word from the future tense , delivered to your nowadays .
You May Also Like
