New York CNN —A federal judge on Wednesday delayed a ban on noncompete agreements from taking effect for a small number of US workers on September 4.
Unless the judge makes another ruling before that date, the ban will go into effect for the majority of employers in the US.
The ban, which prohibits employers from enforcing noncompete clauses in most existing employment agreements and bans companies from including them in all future ones, was approved by the Federal Trade Commission in April.
The FTC estimates that 30 million people — one in five US workers — are bound by a noncompete clause in their current jobs.
In response to the order, FTC spokesperson Douglas Farrar said, “The FTC stands by our clear authority, supported by statute and precedent, to issue this rule.
Persons:
”, Ada Brown, Ryan, Daryl Joseffer, Douglas Farrar
Organizations:
New, New York CNN, Court, Northern, Northern District of Texas, Federal Trade Commission, Ryan LLC, US Chamber of Commerce, Business, Texas Association of Business, Longview Chamber of Commerce, Plaintiff, FTC, US, of Commerce, U.S, Chamber
Locations:
New York, Northern District, Texas, Longview