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The FTC’s ban against noncompete agreements may be under threat

Photo collage of Congress.
Illustration by The Verge | Photo via Getty Images

A federal judge could block the Federal Trade Commission’s impending ban on noncompete agreements from going into effect. Noncompete agreements are intended to make it difficult for employees to switch to similar positions at other companies or start businesses of their own, and they’ve been a contentious issue within tech companies in particular.

The ban had been set to go into force on September 4th, but on Wednesday, Judge Ada Brown issued a preliminary injunction in a lawsuit brought against the FTC. For those plaintiffs, the FTC’s ban will no longer go into effect on September 4th. Brown says she plans to rule on their entire challenge to the FCC “on or before August 30, 2024,” potentially stopping the FTC from blocking noncompetes…

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