Federal Trade Commission building in Washington, D.C, on January 12, 2022. Photo: Diego M. Radzinschi/ALM
The first legal challenges to the Federal Trade Commission's nationwide ban on noncompetes are flooding in from business groups claiming the commission overstepped its authority on Tuesday by approving the new regulation.
The U.S. Chamber of Commerce, which was promising to challenge the restriction even before the commission's 3-2 vote approving it, filed the first lawsuit in the Eastern District of Texas, followed closely by the tax services firm Ryan LLC in the Northern District. The chamber was joined in its lawsuit by Business Roundtable, which is an association of CEOs from many of the nation's largest companies, and the Texas Association of Business.
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Maria Dinzeo
Maria Dinzeo is a San Francisco-based journalist covering the intersection of technology and the law, with a focus on AI, privacy and cybersecurity.
