Chamber of Commerce Sues to Block FTC’s Non-Compete Ban
- Agency adopted rule to outlaw nearly all worker non-competes
- Business groups argue that the rule exceeds FTC authority
The Federal Trade Commission headquarters in Washington, DC.
Photographer: Ting Shen/BloombergBusiness groups led by the US Chamber of Commerce sued the Federal Trade Commission Wednesday seeking to block a rule finalized this week that would outlaw non-compete provisions that prohibit workers from switching jobs within an industry.
In a complaint filed in Texas federal court, the nation’s largest business lobby argued that the antitrust and consumer protection agency lacks the authority to issue rules that define unfair methods of competition. The FTC Act, which established the agency, allows it to bring cases challenging particular practices, the group said, but not to write rules. The Chamber was joined by Business Roundtable and several Texas business groups in challenging the rule.