Brown Heralds Court Decision Halting Khan’s Non-Competes Ban

WASHINGTON – After the U.S. District Court for the Northern District of Texas sided with plaintiffs’ efforts to block the Federal Trade Commission’s (FTC) near-total ban on worker noncompetes from taking effect, Chair Scott Brown released the following statement:

“We are pleased that common sense prevailed, and Chair Lina Khan’s efforts to ban a commonly used business practice was blocked. By protecting intellectual property and investment in worker development, non-compete agreements are a critical component of fostering fair competition, which should be Chair Khan’s focus. Instead, she continues to try to dramatically expand the powers of her agency to hamstring almost every facet of the American private sector, which is something she knows little about, having spent her entire career in the gilded halls of academia and government.”

The case, Ryan LLC v. Federal Trade Commission, was brought by a Texas tax firm in April.

The FTC has come under fire after congressional leaders raised allegations that the commission deleted materials related to the proposed non-compete rule. Last fall, U.S. Senate Commerce Committee Ranking Member Ted Cruz (R-TX), House Judiciary Committee Chairman Jim Jordan (R-OH), and House Oversight Committee Chairman James Comer (R-KY) sent a bicameral letter to FTC Chair Khan demanding answers regarding the agency improperly destroying records.

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