Legal
FTC Issues Worker Non-Compete Ban as Chamber Lawsuit Looms
- Final rule bars nearly all worker non-compete agreements
- Business lobby pledged legal challenge as soon as Wednesday
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 the Chamber 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.