US judge strikes down Biden administration ban on worker ‘noncompete' agreements

A federal judge in Texas has blocked a rule by the US Federal Trade Commission (FTC) that would have banned employers from requiring workers to sign non-compete agreements. The rule was set to take effect nationwide on September 4 but has now been halted. The judge ruled that the FTC lacks the authority to implement such a ban and that the rule itself is arbitrary and capricious. The FTC is considering an appeal, while the US Chamber of Commerce has praised the decision as a win against government overreach. Around 20% of US workers, or approximately 30 million people, have signed non-compete agreements.