Business groups that represent employers are not pleased with the Federal Trade Commission’s new ban on noncompete agreements and have already gone to court seeking to block it.Noncompete agreements forbid workers from taking jobs at competing businesses for a certain period of time, effectively locking workers into their current positions.
Conservative groups often choose to mount their challenges to progressive federal policies in Texas, where they’re more likely to find a judge who shares their dislike for the regulatory state — a legal practice called “forum shopping.” The Chamber filed its lawsuit in Texas’ Eastern District, which falls under the U.S. Court of Appeals for the 5th Circuit, considered theMany legal observers expect the case to eventually reach the U.S.
The commission’s rule would render existing noncompetes unenforceable and bar employers from entering into new ones.at the time showed that 3 in 5 respondents supported such a regulation, including 66% of those who were employed.Given public approval for such a ban, it’s not surprising that many detractors have objected to the FTC’s move mostly on procedural grounds, rather than defending the use of the agreements themselves.
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