A federal judge in Texas has blocked a new rule from the Federal Trade Commission that would have made it easier for employees to quit a job and work for
a competitor.
In reaching his decision, Brown concluded that that the FTC “exceeded its statutory authority” in making the rule, which the judge called “arbitrary and capricious.” The judge also concluded that the rule would cause irreparable harm. Still, the decision does not prevent the agency from addressing noncompete agreements through “case-by-case” enforcement actions, said Victoria Graham, an FTC spokesperson.The FTC voted in April to prohibit employers nationwide from entering into new noncompete agreements or enforcing existing noncompetes, saying the agreements restrict workers’ freedom and suppress wages.
In the Pennsylvania lawsuit, the court concluded that the plaintiff, a tree company, failed to show it would be irreparably harmed by the ban and that the company wasn’t likely to win the case.ANCHORAGE, Alaska — Storm-battered residents in the western Alaska village of Napakiak were preparing for the third storm in a week Tuesday, days after a minister had to use a front loader to free people from flooded homes.
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