Chamber of Commerce sues FTC in Texas, asks court to block ban on noncompetes

The US Chamber of Commerce and other business groups sued the Federal Trade Commission and FTC Chair Lina Khan today in an attempt to block a newly issued ban on noncompete clauses.

The lawsuit was filed in US District Court for the Eastern District of Texas. The US Chamber of Commerce was joined in the suit by Business Roundtable, the Texas Association of Business, and the Longview Chamber of Commerce. The suit seeks a court order that would vacate the rule in its entirety.

The lawsuit claimed that noncompete clauses "benefit employers and workers alike—the employer protects its workforce investments and sensitive information, and the worker benefits from increased training, access to more information, and an opportunity to bargain for higher pay."