Results for: Business Groups

Business groups led by the U.S. Chamber of Commerce have filed a lawsuit against the Federal Trade Commission (FTC) over its decision to ban noncompete agreements. The FTC voted 3-2 Tuesday to pass the rule blocking new noncompete agreements, arguing that it will allow millions of workers to change jobs within their industry and earn more money. Business groups, however, say noncompete agreements are necessary to protect intellectual property and accuse the FTC of regulatory overreach. The new rule was supposed to go into effect in 120 days, but the lawsuit will extend that timeline.

Business groups, led by the U.S. Chamber of Commerce, have sued the Federal Trade Commission (FTC) over its decision to ban noncompete agreements, arguing that the agency overstepped its authority and that noncompete agreements are necessary to protect intellectual property. The FTC voted to pass the rule blocking new noncompete agreements and requiring employers to revoke existing ones, with an exemption for senior executives. The agency estimates that the ban will allow 30 million people, or 18% of the U.S. workforce, to change jobs within their industry and earn more money. The lawsuit was filed by the Chamber, Business Roundtable, Texas Association of Business, and Longview Chamber of Commerce in the U.S. District Court for the Eastern District of Texas. The new rule was expected to go into effect in 120 days, but the legal challenges will likely delay its implementation.

Business groups led by the U.S. Chamber of Commerce have filed a lawsuit against the Federal Trade Commission (FTC) challenging its decision to ban noncompete agreements. The FTC rule, which was set to go into effect in 120 days, would prohibit employers from entering into new noncompete agreements and require them to rescind existing ones. The agency argues that the ban will benefit workers by allowing them to change jobs within their industry and earn more money. However, business groups contend that noncompete agreements are necessary to protect intellectual property and accuse the FTC of regulatory overreach. The lawsuit marks a growing divide between the Biden administration and the business community, with President Biden supporting the noncompete ban while many business leaders view it as an attack on free enterprise.

In a historic move, the Federal Trade Commission (FTC) has banned the use of noncompete agreements by US companies, allowing employees to freely seek employment with competitors. Previously, an estimated 30 million workers were bound by these restrictive clauses, limiting their ability to switch jobs and earn higher salaries.