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Judge delays ban on noncompete agreements for small number of employers

The future of a Federal Trade Commission ban on noncompete agreements, scheduled to take effect this fall, is unclear after a preliminary ruling from a federal court last week.

Nearly 1 in 5 Americans, an estimated 30 million people, are subject to a noncompete agreement, according to the FTC. The agreements prevent workers from taking a new job with competitors or starting a new business in the same industry.

The Biden administration first proposed banning noncompete agreements in January 2023. In response, the FTC received more than 26,000 comments, with 25,000 of them in favor of the rule.

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