Wednesday, April 24, 2024

US Chamber of Commerce intends to sue Democrat-controlled FTC for passing rule 3-2 banning noncompete agreements

Congress has not given the agency explicit authority to ban noncompetes. ... The U.S. Chamber of Commerce, the largest pro-business lobbying group in the country, has said it will sue to block the rule. ... While the dissenting commissioners said they did not support noncompete agreements carte blanche, they did not believe the agency had the authority to issue the rule without an express directive from Congress.

More.

It's a BFD, as Joe would say.

Millions of American workers are not completely free to work where they may because of noncompete, nondisclosure, and confidentiality agreements they must sign as a condition of employment or as a condition of severance on termination of employment.

The FTC vote covers only the noncompete issue and represents an end run around Congress which has failed to pass appropriate legislation.