A federal court in Texas has thrown out the government’s ban on noncompete agreements that was set to take effect September 4.
In her ruling, Judge Ada Brown of the U.S. District Court for the Northern District of Texas wrote that the federal agency had overstepped its power when it approved the ban.
“The FTC lacks substantive rulemaking authority with respect to unfair methods of competition,” she wrote. "The role of an administrative agency is to do as told by Congress, not to do what the agency think[s] it should do.”
A reminder that regardless of this absurdly bad federal ruling, noncompete clauses are still unenforceable in California. So at least 40 million-ish of us are safe.
Just wait. I’m sure Ken Paxton will sue California in the fifth circuit.