Say no to toxic work environments….
The Federal Trade Commission (FTC) pushed a bold vote to ban close to all non-compete forms — agreements employees sign that prevent them from joining competing businesses or launching their own.
“One person noted when an employer merged with an organization whose religious principles conflicted with their own, a noncompete kept the worker locked in place and unable to freely switch to a job that didn’t conflict with their religious practices.”
Less than 24 hours after the vote, the U.S. Chamber of Commerce and the Business Roundtable filed a lawsuit against the agency in federal court in the Eastern District of Texas, according to CNN. Another suit was filed by business tax services firm Ryan in the Northern District of Texas.
The U.S. Chamber promised to pursue a lawsuit well before the vote, saying the FTC overstepped administrative authority by outlawing what they describe as “unfair methods of competition.” Dissenting commissioners Melissa Holyoak and Andrew Ferguson shared similar views. Holyoak predicted legal challenges and the the ban would eventually be struck down.
“If the FTC can regulate noncompete agreements, then they can decide to regulate or even ban any other business practice. All without a vote from Congress.”
Employment lawyer and DLA Piper partner Daniel Turinsky feels these suits are just the beginning. “We think it’s likely additional lawsuits could be filed,” he said.
In response to the Chamber’s lawsuit, Khan said she is confident in the rule and said the agency has “clear legal authority” to issue such a ban.
Source: Black Enterprise
