What a Trump-appointed judge taketh away, a Biden judge giveth
The Federal Trade Commission's ban on noncompete agreements has been upheld after a second legal challenge, with a Philadelphia judge deciding that the FTC was well within its legal authority to prohibit such contract clauses.
"The Court finds it clear that the FTC is empowered to make both procedural and substantive rules as is necessary to prevent unfair methods of competition," Hodge wrote."Had Congress intended to limit the FTC's substantive rulemaking authority … it would have done so at any time over the last century."
"We are disappointed by the court's decision to deny our client … a preliminary injunction today," attorney Josh Robbins of libertarian law group Pacific Legal Foundation and representative for ATS told"The FTC does not have the statutory authority to rewrite millions of employment contracts by banning noncompete agreements," Robbins added."Despite today's ruling, we will continue to fight the FTC's power-grab.
It's not clear whether the outcome of the Philadelphia case will have any bearing on deliberations in Texas, which are ongoing. The stay in the matter isn't yet permanent, though Brown said it very well may become so when she issues a decision in August.
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