US Chamber of Commerce to sue FTC for banning noncompetes in most jobs

Source: The Register

The US Chamber of Commerce is saying it will sue the Federal Trade Commission (FTC) for officially banning noncompete clauses in employment contracts across Amercia.

A noncompete agreement typically blocks the employee who signed it from going to work for a rival or starting up a competing business of their own.

The Chamber of Commerce labeled the FTC's publication of its final rule yesterday as an "unlawful power grab." The feds claim the move will help usher in 8,500 extra new businesses and 17,000-29,000 more patents each year.

It all kicked off last year when America's federal employment regulator said it was worried about the unequal bargaining power between employers and workers, claiming that noncompete clauses were limiting employees' ability to practice their trade. It asked for Americans' opinions – and received more than 25,000 comments out of 26,000 that were in support of the ban.

Read more: https://www.theregister.com/2024/04/24/noncompetes_ban_ftc/