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Judge delays ban on noncompete agreements for employees

·1 min

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A federal judge has delayed the implementation of a ban on noncompete agreements for some US workers. The ban, approved by the Federal Trade Commission in April, prohibits employers from enforcing noncompete clauses in existing employment agreements and also bans including such clauses in future agreements. However, a preliminary injunction has been granted for the plaintiff (Ryan LLC) and plaintiffs-intervenors, which include various business groups. The ban is still expected to go into effect for the majority of employers in the US unless there is another ruling before September 4. The FTC estimates that approximately 30 million US workers are currently bound by noncompete clauses.