Business groups race to block FTC’s ban on noncompete agreements

Lawsuits could delay agency’s plan to prevent employers from using agreements

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The nation’s biggest business lobbying group and a national tax-services firm both sued the Federal Trade Commission on Wednesday, igniting a flare of lawsuits over the agency’s regulation aimed at ending noncompete agreements.

The U.S. Chamber of Commerce challenged the regulation in federal court in East Texas, while the tax firm Ryan LLC filed its lawsuit in Dallas. Other business groups joined the chamber’s suit, including the Business Roundtable, which represents chief executive officers of some of the country’s biggest employers.

The rule, issued by the FTC on Tuesday, prohibits companies from enforcing existing noncompete agreements on anyone other than senior executives. The FTC says one in five Americans is subject to noncompete agreements.

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