Federal Judge Blocks FTC Non-Compete Rule, Calling It Arbitrary

• A federal choose blocked the Federal Commerce Fee’s non-compete regulation.
• The Texas choose dominated the FTC exceeded its authority and referred to as the rule arbitrary and capricious.
• The rule was slated to take impact on September 4.

A Texas federal choose has blocked the implementation of the Federal Commerce Fee’s regulation that may have canceled practically all current non-compete agreements.

Tuesday’s determination is a reduction to employers, who proceed to stay protected towards staff quitting and dealing for direct opponents.

The choose dominated that the FTC “exceeded its statutory authority” in making the rule, which the choose referred to as “arbitrary and capricious.” The choose additionally concluded that the rule, which might have gone into impact on September 4, would trigger irreparable hurt.