FTC Noncompete Ban Freeze Signals Tough Legal Road for Agency

A push by the Federal Trade Commission to broaden its regulatory powers was dealt a serious setback after a federal judge in Texas put on ice its rule banning noncompete provisions across the US.

Judge Ada Brown, of the US District Court for the Northern District of Texas, on Wednesday sided with the US Chamber of Commerce and a Texas tax firm’s argument that the FTC overstepped its legal authority with a sweeping regulation barring worker noncompetes.

The decision, on the heels of a set of Supreme Court decisions reining in agency power, demonstrates the challenge the FTC faces in ...