A federal judge in Florida ruled Aug. 14 against the Federal Trade Commission’s (FTC’s) proposed ban on most noncompete agreements.
Chief Judge Timothy Corrigan of the U.S. District Court for the Middle District of Florida held that the FTC didn’t have the authority to issue such a broad action. But his decision only applies to the plaintiff, a real estate agency in The Villages, Fla. Nothing has changed for employers across the country that are preparing for the FTC rule to take effect Sept. 4.
We’ve rounded up articles and resources from SHRM Online and other outlets to provide more context on the news.
This is the second federal court to stop the FTC noncompete ban from taking effect, but again only for the parties involved in the suit. A U.S. district court in Texas issued a similar ruling on July 3 in a case brought by the U.S. Chamber of Commerce and other business groups.
All eyes now turn back to Texas, where the judge in that case indicated she would issue a final merits disposition by Aug. 30. The parties have asked for a permanent nationwide injunction in the event the judge sticks to her conclusion that the noncompete ban is unlawful.
The language in Judge Ada E. Brown’s decision from the U.S. District Court for the Northern District of Texas indicates the rule will be struck down.
Brown held that the FTC violated the Administrative Procedure Act and exceeded its statutory authority by issuing the...
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