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- A federal judge blocked the Federal Trade Commission's non-compete regulation.
- The Texas judge ruled the FTC exceeded its authority and called the rule arbitrary and capricious.
- The rule was slated to take effect on September 4.
A federal judge has blocked the implementation of the Federal Trade Commission's regulation that would have canceled nearly all existing non-compete agreements.
Tuesday's decision is a relief to employers, who continue to remain protected against employees quitting and working for direct competitors. The rule would have gone into effect on September 4.
US district judge Ada Brown in Dallas said that the FTC does not have the authority to stop competition by adopting such broad rules. She called the rule "capricious."