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Media Center

August 23, 2024 1:18pm

US Chamber succeeds in halting FTC non-compete rule

This week, the U.S. Chamber of Commerce scored a major legal victory for American businesses, workers, and the economy after the U.S. District Court for the Northern District of Texas set aside the Federal Trade Commission’s (FTC) ban on employment noncompete agreements. This decision marks a significant win for businesses as they continue to navigate a competitive economic climate. The sweeping prohibition of noncompete agreements by the FTC was an unlawful extension of power that would have put American workers, businesses, and our economy at a competitive disadvantage

The U.S. Chamber, alongside Business Roundtable, Texas Association of Business, and Longview Chamber of Commerce, filed a lawsuit on April 23, 2024, stating the ruling reaches beyond the scope of the FTC’s authority, and the agency cannot declare simple business practices to be “unfair methods of competition” and thus illegal.

GLI was proud to stand with our fellow chambers as we work to make our communities a good place to live, work, and do business.

To read more about this case and the work of the U.S. Chamber read here.