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.
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.
Join the Conversation
VIP members get the ability to comment on articles.