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The Federal Trade Commission’s (FTC) noncompete ban, which is set to take effect on September 4, is facing numerous legal challenges. In two recent cases, judges offered differing views on the legality of the FTC ban.
Ban temporarily blocked in Texas. On July 3 a Texas federal judge issued a temporary partial block of the noncompete ban from taking effect for plaintiffs named in a lawsuit against the FTC. The judge wrote that the FTC rule is “arbitrary and capricious,” in part “because it is unreasonably overbroad without a reasonable explanation.” The judge took issue with the ban for having a