A Texas federal court blocked the FTC's planned ban on noncompete agreements. Noncompete agreements prevent employees from moving to competitors or starting similar businesses, which the FTC argued suppresses wages and innovation. However, business groups argued it restricted free market decisions. U.S. District Judge Ada Brown, appointed by Former President Donald Trump, ruled that the FTC does not have the authority to regulate unfair competition practices based on the FTC Act.
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00:00It's Benzinga, and here's what's on the block.
00:02A Texas federal court blocked the FTC's planned ban on non-compete agreements from taking effect.
00:08Non-compete agreements prevent employees from moving to competitors or starting similar businesses,
00:13which the FTC argued suppresses wages and innovation.
00:16However, business groups argued that it restricted free market decisions.
00:20The U.S. District Judge Ada Brown, appointed by former President Donald Trump,
00:24ruled that the FTC does not have the authority to regulate unfair competition practices based on the FTC.
00:31For all things money, visit Benzinga.com.