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US district court judge throws out FTC’s ban on noncompetes

Image of Federal Trade Commissioner Lina Khan on a stage.
Federal Trade Commissioner Lina Khan. Photo: Michael M. Santiago/Getty Images

Julie DiMauro

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A US judge says the FTC’s rule banning noncompetes – which was set to take effect on September 4 – was created “in excess of [the FTC’s] statutory authority.”

A federal judge in Texas has blocked moves by the Federal Trade Commission (FTC) to ban noncompete agreements. US District Judge Ada Brown in Dallas, an appointee of Republican former President Donald Trump, said the FTC does not have the authority to ban practices it deems unfair methods of competition

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