Business groups sue to block FTC's ban on noncompete agreements

ban on noncompete agreementsThe lawsuit will likely delay the ban from taking effect — or derail it entirely, and test the limits of the FTCs power.

Noncompetes are clauses in employment contracts that prohibit workers from taking jobs with their employer's competitors. They have become more widely used and criticized in recent years for unfairly restraining employees — particularly at the lower end of the income scale.Filed by the Chamber of Commerce and the Business Roundtable, along with two Texas business groups, the suit argues that the FTC overstepped its authority in issuing the rule.

It's a sign that this rule could ultimately be in the hands of SCOTUS, which has been less amenable to broad regulations.it expects an increase in workers' wages of between $400 - 488 billion over the next decade if the ban goes into effect.Share on linkedin

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