NEW ORLEANS — The ruling impacts about 30-million workers. The judge sided with the U.S. Chamber of Commerce and some other plaintiffs, ruling that the FTC overstepped its authority and the ban would cause irreparable harm.
Here’s the background:
In April, the Federal Trade Commission voted to ban noncompete agreements for almost all workers in the U.S. It would have gone into effect September 4.
These agreements make it difficult to quit and work for a competitor. They’re common in technology and engineering, sales, finance and accounting, healthcare, creative design, and the broadcast industry.
The FTC says these types of agreements limit workers economic liberty and a ban would result in more business growth and increased wages.
Currently, Louisiana limits non competes to two years.
Some individual states have banned or severely restricted non-competes, including California, Minnesota, and Oklahoma.
So here’s why the FTC’s fight against non-competes isn’t over.
It still could address non-competes on a case by case basis, or it could appeal the judge’s ruling.
That means - for now - any non-compete agreement you’ve signed in Louisiana is valid until this plays out further in the courts.
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