Federal Judge Grants Partial Restraining Order Against U.S. Noncompete Ban

Money | July 3, 2024, 4:44 p.m.

A federal judge in Texas has partially blocked the U.S. government's ban on noncompete agreements, delaying its effective date for plaintiffs like tax services firm Ryan LLC. Judge Ada Brown's ruling suggests the plaintiffs will likely succeed in their case, arguing the FTC overstepped in declaring all noncompetes unfair. The ban, set to take effect on September 4, was seen as a win for American workers, as nearly 30 million are bound by these agreements. The FTC estimates eliminating noncompetes could lead to widespread wage increases and business growth. However, businesses like Ryan LLC and Sweet Tea Yoga argue noncompetes are necessary to protect their interests and prevent competition from harming their operations. The battle over noncompetes continues, highlighting the complex implications these agreements hold for both employers and employees across various industries.