DOJ Won’t Defend the Biden Administration Ban on Noncompete Agreements

The U.S. Justice Department will not defend the noncompete ban put into effect by the Biden administration. Under President Biden, the Federal Trade Commission (FTC) officially set up the rule a couple of years ago.

FTC Chairman Andrew Ferguson said he does not support the rule, nor does the president nor do many Republicans. Ferguson’s department has filed motions in two separate courts to dismiss the appeals filed by the Biden administration.

The two suits were originally filed by the U.S. Chamber of Commerce and other business groups and individual businesses.

More than 20% of us work under noncompete agreements. The appeal filed by the Biden administration might have answered the question as to whether the FTC has the legal power to put such a rule into effect and enforce the rule once it is in place.

It is Ferguson — and the Trump administration’s — opinion that the FTC has limited power and cannot unilaterally put such a ban into place.

Source link: Insurance Journal — https://bit.ly/42yWKli