Biden Administration Sued Over ‘Blatant Power Grab’ in Banning Worker Noncompete Agreements

The plaintiff called the ban ‘not only unlawful but also a blatant power grab that will undermine American businesses’ ability to remain competitive.’

The Federal Trade Commission building in Washington. Paul J. Richards/AFP via Getty Images

The Biden administration faces multiple lawsuits—including from the nation’s biggest business lobby—over a new federal ban on the vast majority of worker noncompete agreements, with the groups claiming that the ban harms the economy and sets a dangerous precedent for government overreach.

The lawsuits come in response to a 3–2 vote by the Federal Trade Commission (FTC) on April 23 to impose a near-total ban on “noncompetes,” as the federal agency often refers to the worker noncompete agreements.