was supposed to take effect on September 4, but a Texan court has postponed its implementation by siding with the plaintiffs in a lawsuit that seeks to block the rule. Back in April, the FTC banned noncompetes, which have been widelyfor years, to drive innovation and protect workers' rights and wages. A lot of companies are unsurprisingly unhappy with the agency's rule — asnotes, Dallas tax services firm Ryan LLC sued the FTC hours after its announcement.
"Noncompete clauses keep wages low, suppress new ideas, and rob the American economy of dynamism," FTC Chair Lina M. Khan said when the rule was announced. They prevent employees from moving to another company or from building businesses of their own in the same industry, so they may be stuck working in a job with lower pay or in an environment they don't like.
"The FTC’s blanket ban on noncompetes is an unlawful power grab that defies the agency’s constitutional and statutory authority and sets a dangerous precedent where the government knows better than the markets," Joseffer said.