A federal judge in Texas has blocked a new rule from the FTC that would have made it easier for employees to quit a job and work for a competitor.
In April, the FTC voted along party lines to approve a nationwide ban on measures known as noncompete agreements, which bar workers from jumping to or starting competing companies for a certain amount of time.
But in a ruling Tuesday, Aug. 20, U.S. District Judge Ada Brown granted a motion for summary judgement filed by the U.S. Chamber of Commerce and other plaintiffs and rejected the FTC's petition for a judgement in its favor.
Brown concluded that the FTC "exceeded its statutory authority" in making the rule, which the judge called "arbitrary and capricious."
As a result of the court's decision, the FTC won't be able to enforce its rule, which was set to go into effect on Wednesday, Sept. 4. The FTC is considering appealing the decision.