Federal judge blocks FTC nationwide noncompete ban FTC exceeded statutory authority

US District Judge Ada Brown, a Trump appointee in Texas, issues a nationwide injunction blocking the FTC's April 2024 rule banning virtually all noncompete agreements for approximately 30 million US workers. The FTC had finalized the rule estimating it would increase average worker wages by $524 per year and generate approximately $400 billion in increased wages over a decade by freeing workers to take better jobs. Brown rules the FTC lacks authority under the FTC Act to issue substantive rules banning entire categories of unfair competition. The ruling comes just weeks after the Supreme Court overturned Chevron deference, emboldening courts to override agency interpretations. The FTC under the Trump administration later abandons the appeal.