Advocacy News – April 25, 2024
After the Federal Trade Commission (FTC) moved earlier this week to essentially ban all noncompete agreements between employers and employees, the U.S. Chamber announced they will be challenging the rule in federal court.
Why it matters: The FTC’s new rule, which will impact an estimated to 30 million workers, sets “a dangerous precedent for government micromanagement of business and can harm employers, workers, and our economy. The Chamber will sue the FTC to block this unnecessary and unlawful rule and put other agencies on notice that such overreach will not go unchecked.,” according to the U.S. Chamber.
The U.S. Chamber, Michigan Chamber and countless other business groups weighed in with the FTC in opposition to the rule, arguing it would hurt businesses’ ability to protect proprietary information and reduce their incentive to invest in workers to prevent them from jumping to a rival employer.
What’s next: The ban on noncompete agreements would take effect in about four months unless the courts block it.
Go deeper: Read the MI Chamber’s full coverage of the rule and its implications.