08/23/2024
In a recent update to the legal battles surrounding the rule from the Federal Trade Commission banning non-compete agreements, a federal judge has blocked the rule from going into effect. The rule, originally set to take effect on September 4, 2024, would have prohibited businesses from establishing new non-compete agreements with employees or independent contractors and nullified most non-competes currently in use. U.S. District Judge Ada Brown set aside the rule as arbitrary and capricious and beyond the FTC’s statutory authority to promulgate rules. The FTC is considering an appeal of the decision to block the rule, and businesses should stay informed to ensure compliance with any future developments.