“I think that this situation absolutely requires a really futile … gesture be done on somebody’s part.”
— Otter, from Animal House
Last week, the Federal Trade Commission issued a rule banning non-compete agreements for almost all workers. Headline grabbing for sure… but maybe not so important in practice.
The rule will almost certainly be enjoined prior to its effective date and subsequently invalidated by the U.S. Supreme Court. Two suits have already been filed in federal district court in Texas. District courts have shown little hesitation in issuing nationwide injunctions prohibiting enforcement of rules issued by the Biden Administration. And this Supreme Court is deeply skeptical of new regulations that expand the scope of agency authority.
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