Worker Noncompete Ban Proposal Promises FTC Authority Fight (1)

The Federal Trade Commission’s aggressive bid to free workers from restrictive noncompete agreements is likely to spark a court challenge testing the scope of the agency’s powers.

The commission Thursday proposed a rule barring noncompete agreements, citing its ability to move against unfair methods of competition under Section 5 of the FTC Act. The proposal represents its most ambitious foray into competition regulation in decades.

Legal scholars have long disagreed about the scope of the agency’s competition rulemaking authority. If finalized in its current form, critics say the proposal could draw fire in several ways, including under the major questions ...