Trump-Appointed Judge Blocks Biden’s Ban On Noncompete Agreements

A federal judge in Texas has blocked the Federal Trade Commission from moving forward with its ban on noncompete agreements, jeopardizing a major reform pursued by President Joe Biden.

U.S. District Judge Ada E. Brown of the Northern District of Texas issued the nationwide order on Tuesday, just two weeks before the rule was slated to go into effect. Brown, an appointee of former President Donald Trump, ruled that the FTC does not have the power to pursue such a broad ban and called it “arbitrary and capricious.”

Employers use noncompete agreements to prevent workers from taking jobs with competing firms. Once the domain of higher-paid, executive-level positions, the agreements are now found throughout the economy, including in low-wage sectors.

The FTC approved the ban in a 3-2 vote in April, with the commission’s three Democrats in favor and two Republicans against it.