US judge will not block Biden administration ban on worker 'noncompete' agreements
A federal judge on Tuesday rejected a bid by a tree-trimming company to block a U.S. Federal Trade Commission rule from taking effect that would ban agreements commonly signed by workers not to join their employers' rivals or launch competing businesses.
Hodge, an appointee of Democratic President Joe Biden, denied a bid by ATS Tree Services to block the rule pending the outcome of its lawsuit.About 30 million people, or 20% of U.S. workers, have signed noncompetes, according to the FTC.
A federal judge in Texas earlier this month blocked the FTC from enforcing the rule against a coalition of business groups including the U.S. Chamber of Commerce, the country's largest business lobby, and tax service firm Ryan, while they pursue legal challenges.
As of now, all noncompete agreements will be banned and voided beginning September 4.
