The U.S. Federal Trade Commission's ban on 'noncompete' agreements commonly signed by workers is likely vulnerable to legal challenges, experts said, as some courts have grown increasingly skeptical of federal agencies' power to adopt broad rules.
Item 1 of 2 The Federal Trade Commission building is seen in Wash ington on March 4, 2012. REUTERS/Gary Cameron /File PhotoApril 25 - The U.S. Federal Trade Commission's ban on "noncompete" agreements commonly signed by workers is likely vulnerable to legal challenges, experts said, as some courts have grown increasingly skeptical of federal agencies' power to adopt broad rules.
The FTC rule may also be invalid because it addresses a "major question" with broad implications for the U.S. economy, whichThe FTC lacks that authority, and Congress itself has declined to pass proposed bans on noncompetes, said Jeremy Merkelson, a partner at law firm Davis Wright Tremaine in Washington, D.C. who represents employers.
The Tyler, Texas court where the Chamber filed its lawsuit has been "a pretty effective firewall against questionable Biden administration rulemaking," said Gregory Hoff, director of labor and employment policy at the business-backed HR Policy Association.
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