U.S. President Biden arrives at Joint Base Andrews in Maryland on July 23, 2024.
Saul Loeb | AFP | Getty Images
A federal judge on Tuesday rejected a tree-trimming company’s request to block a Federal Trade Commission rule that would have barred workers from generally signing agreements not to join their employer’s competitors or conduct competing business.
U.S. District Judge Kelly Hodge in Philadelphia said in a written ruling that the Federal Trade Commission, which enforces federal antitrust laws, has the authority to ban practices it deems anticompetitive, including Use a so-called non-compete agreement Stifling labor competition.
Hodge, an appointee of Democratic President Joe Biden, rejected a request from ATS Tree Services to block the rule pending the outcome of the lawsuit.
According to the FTC, approximately 30 million people, or 20% of U.S. workers, have signed non-compete agreements.
Earlier this month, a federal judge in Texas Prevent the FTC from enforcing the rule Opposed a coalition of business groups including the U.S. Chamber of Commerce, the largest U.S. business lobby, and tax services firm Ryanair, while pursuing a legal challenge.
