The Chamber will file a lawsuit against the Federal Trade Commission (FTC) after the agency voted to ban employer noncompete agreements. The FTC’s action sets a dangerous precedent for government micromanagement and will harm employees, employers, and the economy.

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Businesses face a regulatory onslaught as federal agencies pursue aggressive policy changes through regulation, preventing them from innovating, growing, and hiring. They need clear rules so they can focus on serving their customers and supporting their communities instead of navigating a maze of extraneous rules and regulations.

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Our take: “Since its inception over 100 years ago, the FTC has never been granted the constitutional and statutory authority to write its own competition rules. Noncompete agreements are either upheld or dismissed under well-established state laws governing their use,” said U.S. Chamber President and CEO Suzanne P. Clark. “Yet, today, three unelected commissioners have unilaterally decided they have the authority to declare what’s a legitimate business decision and what’s not by moving to ban noncompete agreements in all sectors of the economy.”