Federal Judge Tosses FTC Ban on Non-Compete Agreements

A federal judge in Texas on Tuesday struck down a landmark regulation issued by the Federal Trade Commission that sought to ban employers from using noncompete agreements to prevent most workers from joining rival firms.

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U.S. District Judge Ada Brown ruled that the commission’s authority to police unfair methods of competition couldn’t be used to issue substantive regulations that ban an entire category of conduct.

“The role of an administrative agency is to do as told by Congress, not to do what the agency thinks it should do,” Brown, a Trump appointee, wrote.

Ed Morrissey

This was a strange idea in the first place. Courts generally don't put a lot of teeth into enforcing such agreements anyway, usually blocking them so as to allow people to earn a living in their own profession. One could argue that it might be a good policy to bar NCAs, but that has to come from Congress, not an executive-branch agency on its own. 

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