Non-compete clauses: US Chamber of Commerce sues Federal Trade Commission a day after ban on non-compete agreements comes into effect

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The US Chamber of Commerce lawsuit alleges the Federal Trade Commission lacks the power to adopt sweeping rules such as the ban on so-called non-compete agreements.

| The US Chamber of Commerce, the country’s largest business lobby, filed a lawsuit on Wednesday seeking to strike down a federal agency’s near-total ban on employers requiring workers to sign agreements not to join rivals or launch competing businesses.

“Companies will face substantial legal costs as they are forced to resort to other tools to attempt to protect their investments,” the chamber said. “And the economy as a whole will suffer as start-ups and small businesses are unable to prevent dominant firms from hiring their best employees and gaining access to their confidential information.”

“Addressing non-competes that curtail Americans’ economic freedom is at the very heart of our mandate, and we look forward to winning in court,” Mr Farrar said.

 

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