WASHINGTON, D.C. (OBV) – The U.S. Chamber of Commerce claimed a significant legal victory on employment noncompete agreements.
The U.S. District Court for the Northern District of Texas set aside the Federal Trade Commission’s (FTC) ban on employment noncompete agreements on Tuesday.
“This decision is a significant win in the Chamber’s fight against government micromanagement of business decisions. A sweeping prohibition of noncompete agreements by the FTC was an unlawful extension of power that would have put American workers, businesses, and our economy at a competitive disadvantage,” said U.S. Chamber of Commerce President and CEO Suzanne Clark. “We remain committed to holding the FTC — and all agencies — accountable to the rule of law, ensuring American workers and businesses can thrive.”
This is the U.S. Chamber’s latest legal victory in its ongoing battle against the Biden Administration’s regulatory initiatives. Previous legal victories are as follows:
- In May 2024, the Chamber won a preliminary injunction against the Consumer Financial Protection Bureau’s credit card late fees rule.
- In March 2024, the Chamber won its challenge against the National Labor Relations Board’s joint employer rule.
- In March 2024, the Chamber won its challenge against the prudential bank regulators’ Community Reinvestment Act Rule.
- In December 2023, the Chamber won its challenge over the Securities and Exchange Commission’s stock buyback rule.
- In September 2023, the Chamber won its challenge against the Consumer Financial Protection Bureau’s Unfair, Deceptive, or Abusive Acts or Practices section of its exam manual.
- In May 2023, the Chamber won a stay against the Environmental Protection Agency’s Waters of the United States Rule.
U.S. Chamber officials say noncompete agreements are important to fostering innovation and promoting competition.
“With a ban, employees could have seen fewer opportunities and reduced investments in their education, training, and development,” U.S. Chamber officials said.
