US Judge Will Not Block Ban on Worker ‘Noncompete’ Agreements

A federal judge on Tuesday rejected a bid by a tree-trimming company to block a U.S. Federal Trade Commission rule from taking effect that would ban agreements commonly signed by workers not to join their employers’ rivals or launch competing businesses.

U.S. District Judge Kelley Hodge in Philadelphia said in a written decision that the FTC, which enforces federal antitrust laws, has the power to ban practices that it deems anticompetitive, including the use of so-called noncompete agreements that curb competition for labor.

Hodge, an appointee of Democratic President Joe Biden, denied a bid by ATS Tree Services to block the rule pending the outcome of its lawsuit.

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