Business News
Business Groups Sue FTC To Block Ban On Noncompete Clauses
The US Chamber of Commerce and other business groups have sued the Federal Trade Commission (FTC) after it decided to ban noncompete clauses.
The ban would prevent employers from stopping employees from working for rival companies.
Filed in US District Courts in Texas, these lawsuits argue the FTC has exceeded its regulatory authority.
The FTC finalized a rule prohibiting noncompete agreements through a narrow 3-to-2 vote, with Republican commissioners dissenting.
The Chamber of Commerce claimed the rule represented "a vast overhaul of the national economy.2
It says the FTC lacks the authority to enforce such a sweeping ban.
The Business Roundtable, the Texas Association of Business, and the Longview Chamber of Commerce are joining the Chamber in this legal challenge.
Separately, Ryan LLC, a Dallas-based tax services firm, filed a similar lawsuit, raising concerns akin to those of the Chamber.
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