Chamber Vows to Sue FTC Over Non-Compete Ban If Rule Goes Ahead

The US Chamber of Commerce is opening another front against the Federal Trade Commission, threatening to sue the agency if it goes ahead with its recently proposed ban on non-compete agreements.

Chamber President and Chief Executive Suzanne Clark told reporters Thursday that the FTC is overstepping its statutory authority by seeking to prevent companies from enforcing non-compete clauses in employee contracts.

The FTC last week proposed a regulation prohibiting employers from entering into or enforcing such non-compete clauses with employees or independent contractors, saying that such agreements limit innovation and suppress wages.

“If this rule goes forward, we will ...