Texas federal judge temporarily halts FTC's noncompete agreement ban on December 28, 2021.
A Texas federal judge has temporarily blocked the FTC's recent ban on noncompete agreements, which aimed to prevent businesses from restricting employees' ability to switch jobs. The FTC implemented the ban on October 13, 2021, but U.S. District Judge Keith P. Ellison issued a preliminary injunction on December 28, 2021, enjoining the FTC from enforcing the ban while the matter is litigated. The lawsuit filed by the state of Texas and a coalition of business groups argued that the FTC lacked the authority to enforce such a ban and contended that the FTC's ban was not grounded in substantial evidence, and was arbitrary and capricious.
August 20, 2024
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