LONGVIEW, Texas — The Longview Chamber of Commerce has joined the U.S. Chamber of Commerce and other organizations in a lawsuit against the Federal Trade Commission seeking to block the measure banning noncompete agreements.
On Tuesday, the FTC voted to ban noncompete agreements, which stop workers from jumping to or starting at competing companies within a certain amount of time, according to the Associated Press.
In the U.S. District Court for the Eastern District of Texas in Tyler, Longview Chamber, U.S. Chamber of Commerce, the Texas Association of Business and nonprofit lobbyist association the Business Roundtable filed a 52-page lawsuit on Wednesday.
The document states that the ban on all noncompete agreements creates a vast overhaul of the national economy and said these contracts did not cause harm to competition in any way.
According to the filing, making the noncompete rule is an "unlawful and unprecedented exercise of bureaucratic power" by the FTC.
The complaint mentions that the Longview Chamber has members who use noncompete agreements and they would be noncompete rule.
The lawsuit also says the FTC's goal was to achieve a "politically pre-determined objective. These groups want the judge to issue a ruling saying the noncompete rule is "arbitrary, capricious, or otherwise contrary to law." They also want to see the noncompete rule set aside.
According to the AP, the U.S. Chamber previously said they would sue to block the measure. The news outlet also reported if former President Donald Trump wins the 2024 presidential election, his administration could withdraw the rule.