Source: The Hill 

A federal judge has denied ATS Tree Services’ request to block the Federal Trade Commission (FTC) from implementing a rule banning noncompete agreements, effective September 4. The FTC’s rule, issued in April, prohibits new noncompete agreements and mandates that companies inform current and former employees that existing agreements will not be enforced, except for senior executives.

Approximately 30 million U.S. workers are affected by noncompete agreements, which span various industries. U.S. District Judge Kelley Hodge ruled that the FTC has the authority under the 1914 Federal Trade Commission Act to prevent unfair competition methods, including noncompete agreements. ATS Tree Services and the HR Policy Association expressed disappointment, arguing the FTC lacks the statutory authority to ban noncompete agreements. Despite this ruling, a separate Texas case involving Ryan, a tax services firm, and other business groups resulted in a temporary block of the FTC rule, pending a final decision by August 30, 2024.

Read the full story HERE: https://thehill.com/business/4790236-federal-trade-commission-noncompete-ban/