A federal judge in Texas has stepped in to partially block a ban on non-compete agreements that was set to take effect later this year.
A company in Dallas sued to block the new rules after the Federal Trade Commission voted to ban the contractual practice earlier this year.
In a ruling, Judge Ada Brown of the Northern District of Texas postponed the date of September 4th, which would have enacted the ban. In her ruling, she argued that blocking the ban was in the public’s interest.
She added that “The FTC lacks substantive rulemaking authority with respect to unfair methods of competition.”
An estimated 30 million people are bound by non-compete agreements, according to a report from NPR.
The FTC has maintained it will continue to fight to outlaw the practice. In a statement, the commission said “The freedom to change jobs is core to economic liberty and to a competitive, thriving economy. Noncompetes block workers from freely switching jobs, depriving them of higher wages and better working conditions, and depriving businesses of a talent pool that they need to build and expand.”
