Federal court decision sets aside FTC ban on noncompetition agreements
A federal court has enjoined the enforcement of the Federal Trade Commission’s nationwide ban of most types of noncompetition clauses, which was slated to go into effect Sept. 4.
The U.S. District Court for the Northern District of Texas set aside the FTC’s sweeping prohibition of noncompetition agreements, ruling that the agency’s ban exceeded its statutory authority and was an unlawful exercise of its rulemaking powers under Section 6(g) of the Federal Trade Commission Act.
The Todd & Weld Employment Litigation team has prepared an Alert summarizing the court’s decision and assessing what employers and employees can expect going forward.