FTC Issues Worker Non-Compete Ban as Chamber Lawsuit Looms (2)

April 23, 2024, 7:18 PM UTC

The US Federal Trade Commission voted Tuesday to adopt a near-total ban on non-compete provisions that prohibit workers from switching jobs within an industry, a rule theChamber of Commerce vowed to immediately challenge in court.

The high-stakes legal showdown comes three years after President Joseph Biden signed an executive order encouraging the FTC to limit non-compete agreements, which affect roughly one in five Americans.

“Robbing people of their economic liberty also robs them of all sorts of other freedoms,” Chair Lina Khan said Tuesday. Arguing that the FTC lacks “rulemaking authority requires ignoring the most straightforward reading of the” ...

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