From PC Mag: US District Judge Ada Brown struck down the FTC's noncompete rule this week, arguing that the FTC did not prove why "such a sweeping prohibition" on noncompetes is necessary. She suggests the agency should have focused on "specific, harmful non-competes," Reuters reports.
The US Chamber of Commerce, which sued over the rules, says the decision is "a significant win in the Chamber’s fight against government micromanagement of business decisions."
A Texas court has postponed the Federal Trade Commission's ban on noncompete agreements, siding with plaintiffs who claim the move is an "unlawful power grab."
Noncompete clauses are used in various industries, particularly the tech world, to prevent workers from jumping ship to a rival or starting their own businesses and potentially taking trade secrets with them. However, the agreements mean workers who leave a company are often forced to work outside their field until their noncompete expires, usually for less money.
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