Biden administration bans noncompete agreements, setting up legal showdown with business groups

NBC News— The Biden administration has issued a nationwide ban on the ability of employers to make their workers sign noncompete agreements, a move regulators said would help boost employee pay but which is set to be challenged in court by business groups. In a ruling Tuesday afternoon, the Federal Trade Commission (FTC) said noncompete clauses would henceforth be illegal. The measure was necessary, it said, for "protecting the fundamental freedom of workers to change jobs, increasing innovation, and...

WSJ—Business Groups Race to Block FTC’s Ban on Noncompete Agreements. WASHINGTON—The nation's biggest business lobbying group and a national tax-services firm both sued the Federal Trade Commission on Wednesday...

The Center Square—Business group plans to sue after FTC bans noncompete contracts. (The Center Square) – The Federal Trade Commission issued a final rule Tuesday to ban noncompete contracts that prevent employees from joining rival companies in a move that immediately drew a legal challenge. U.S. Chamber of Commerce President and CEO Suzanne Clark said the measure was illegal and would hurt businesses and workers. "The Federal Trade Commission's decision to ban employer noncompete agreements across the economy is not only unlawful but also a...

CNBC—Biden administration faces onslaught of lawsuits as business groups claim regulatory overreach. The Biden administration faces a wave of lawsuits targeting its regulatory agenda, as business groups argue federal agencies are overstepping their authority.