A federal judge just blocked a Biden administration ban targeting non-compete agreements.
Transcript:
Conway Gittens: Here’s what we’re watching on TheStreet today.
The American shopper is in a buying mood and that has kept optimism alive on Wall Street. Shares of Target are surging after the discount retailer posted its first quarterly rise in same-store sales since 2022. Target boosted its full-year guidance as shoppers respond favorably to a fresher product mix – and of course – price cuts.
Turning to other business news: A federal judge has totally blocked a Biden Administration effort to do away with corporate non-compete agreements.
The Federal Trade Commission put the rule into effect back in May, which would have prevented workers from being forced to sign employer contracts that stop them from taking a job with a rival or starting a competing business.
In her ruling, the judge said the FTC rule went beyond its jurisdiction of regulating antitrust behavior. “The Commission’s lack of evidence as to why they chose to impose such sweeping prohibition…instead of targeting specific, harmful non-competes, renders the Rule arbitrary and capricious.”
According to the FTC, non-competes make it harder for workers to switch jobs within their field, which in effect, hampers the potential to leverage that expertise into a higher income. Some 30 million people have signed non-competes, according to government estimates.
Business groups, however, argue the practice is necessary to keep proprietary information safe and prevent competitors from getting their hands on company secrets.
Typical non-competes can last anywhere from six months to two years.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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