Federal Trade Commission building in Washington, D.C, on January 12, 2022. Photo: Diego M. Radzinschi/ALM.

The first legal challenges to the Federal Trade Commission's (FTC's) nationwide ban on non-competes are flooding in from business groups claiming the commission overstepped its authority a week ago by approving the new regulation.

The U.S. Chamber of Commerce, which was promising to challenge the restriction even before the commission's 3-2 vote approving it, filed the first lawsuit in the Eastern District of Texas, followed closely by the tax services firm Ryan LLC in the Northern District. The chamber was joined in its lawsuit by the Business Roundtable, which is an association of CEOs from many of the nation's largest companies, and the Texas Association of Business.

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Maria Dinzeo

Maria Dinzeo is a San Francisco-based journalist covering the intersection of technology and the law, with a focus on AI, privacy and cybersecurity.

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