Business groups challenging the new rule, which blocks new noncompete agreements, say noncompete agreements are necessary to protect intellectual property and accuse the FTC of regulatory overreach.
The Chamber, Business Roundtable, Texas Association of Business and Longview Chamber of Commerce filed the lawsuit against the FTC in the U.S. District Court for the Eastern District of Texas.
“These agreements benefit employers and workers alike—the employer protects its workforce investments and sensitive information, and the worker benefits from increased training, access to more information, and an opportunity to bargain for higher pay,” the lawsuit states.
The move comes after the Chamber recently sued the Consumer Financial Protection Bureau to block a new rule that would cap credit card late fees levied by the largest issuers at $8, a fraction of the average $32 late fee.
The pro-business lobbying giant also accused the bureau of overstepping its authority when it issued the rule.
While whether these cases get resolved before the 2024 presidential election remains to be seen, they do draw a stark contrast between President Biden and the presumptive Republican nominee, former President Trump.
The FTC says the noncompete ban will allow 30 million people, around 18 percent of the U.S. workforce, to change jobs within their industry and earn more money.
The Hill’s Taylor Giorno has more here.
