Judge blocks FTC ban on noncompete agreements

(CNN) – A federal judge in Texas has blocked the Federal Trade Commission’s ban on noncompete clauses.

The judge found the federal agency lacked authority to issue the rule, which would have voided contracts that ban workers from moving to rival employers.

The FTC rule would have taken effect in September and invalidated employment contracts for an estimated 30 million workers.

In a statement, the FTC said it was disappointed by the decision and is considering a potential appeal.