A federal judge in Texas has issued a ruling blocking a new rule from the Federal Trade Commission (FTC) that aimed to make it easier for employees to switch jobs and work for a competitor. The ruling came in response to a motion for summary judgement filed by the U.S. Chamber of Commerce and other plaintiffs, who argued that the FTC had overstepped its authority in creating the rule.
The judge, Ada Brown, deemed the FTC's rule as 'arbitrary and capricious' and concluded that it would cause irreparable harm. As a result, the FTC will not be able to enforce the rule, which was scheduled to take effect on September 4.
