The Court Battle to Block FTC Non-Compete Reforms

The Federal Trade Commission (FTC) has issued a total ban on non-compete agreements. Several groups — including the American Property Casualty Insurance Association (APCIA) — have filed a suit. They contend the FTC does not have the authority to ban non-compete contracts.

The groups also argue that non-compete contracts protect their confidential information and their investments in training.

The APCIA suit was filed in US District Court for the Northern District of Texas. Other groups filing suit in Florida are the American Investment Council and the Managed Funds Association.

So far decisions on suits filed over the FTC decision are mixed. Texas Judge Ada Brown issued a preliminary injunction in a US Chamber of Commerce suit. But Pennsylvania Judge Kelley Brisbon Hodge ruled the FTC does have the authority to ban the non-competes.

Source link: Bloomberg Law — https://bit.ly/3WKHlM4