There was more good news about shrinking agency powers. Yesterday, Reuters reported, “
US judge strikes down Biden administration ban on worker 'noncompete' agreements.” A Texas court found the FTC lacked authority for its broad rule banning noncompete clauses in American employment agreements. Plus, the Trump-appointed judge said the rule was
illogical. In other words, Biden threw a desperate 50-yard pass, but the court intercepted the FTC’s ball.
File this story under more great news for freedom; we are enjoying the first fruits of the post-
Chevron generation.
Even if you think noncompetes are anti-competitive and unfair to employees, federal Executive-branch agencies should not have the power to rewrite major chunks of ancient contract law
because fairness. If it must be done, let the states do it. (In fact, most states already have detailed laws governing noncompetes, which tend to be employee-friendly.)
The FTC’s rule was indefensibly broad. The blanket ban left the agency’s lawyers with almost nothing to work with. The lawyers tried running the ‘parade of horribles’ play, by burying the judge under 100 different examples of obviously unfair contracts. But to counter that play, the plaintiffs only had to find
one single contract that made sense.
They did. So the judge asked the FTC a completely predictable question: why did you ban
all noncompetes, instead of just the bad kinds? The FTC’s answer was gibberish and gobbledygook, hence
illogical.
I bet they won’t appeal, even though FTC spokesperson Victoria Graham said the disappointed agency is “seriously considering a potential appeal.” It was a give-away; too many weasel words:
seriously considering and
potential appeal. It’s now a post-
Chevron world, and they know it.
Daily DNC update for non-watchers; betting markets begin shifting; FTC loses in agency powers case; WaPo dishes truth about peace talks; Trump expands platform; CNN slips in Kamala truth bomb; more.
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