FTC Non-Compete Rule Blocked by Federal Judge

Recently we provided an update on the Federal Trade Commission’s new rule which banned certain non compete agreements from being enforced throughout the US. Though slated to be put into effect in September, we mentioned that the rule had begun to face opposition in the courts. As of August 20th, a federal judge has now placed a nationwide injunction on the enforcement of the FTC’s rule. It is unlikely that this is the last we will hear of the non compete rule, but the FTC’s authority in the matter is appearing increasingly tenuous. Particularly in light of the Supreme Court’s recent ruling striking down chevron deference, which required courts to give a higher level of deference to governmental agencies in interpreting the law. 

For more information, see the following link: https://news.bloomberglaw.com/daily-labor-report/ftc-ban-on-worker-noncompete-deals-blocked-by-federal-judge