US businessmen file suit to prevent workers from fleeing to competitors

The United States Chamber of Commerce, the largest business group in the country, filed a lawsuit this Wednesday before a Texas court with the aim of preventing the flight of workers to competitors.

The lawsuit is specifically directed against a regulation announced yesterday by the Federal Trade Commission (FTC) to prohibit those clauses in contracts that prevent employees from going to work for competitors, an initiative that seeks to provide greater flexibility in the American labor market.

In that lawsuit, the United States Chamber of Commerce argues that the FTC’s decision is illegal and that said body does not have the power to issue these regulations.

In a statement, Chamber of Commerce President Suzanne Clark said the FTC’s decision “sets a dangerous precedent” and ““It can harm employers, workers and the economy.”

The new rule, of national scope, establishes that the so-called non-compete clauses violate the ‘FTC Act’, which was approved by the agency with three votes in favor and the opposition of two Republican commissioners.

These types of clauses prohibit certain employees from going to work for a competitor for a certain period of time or from founding specialized companies in which they have worked under certain circumstances.

The FTC believes that this regulation will increase wages by allowing greater competition in skilled jobs, one of the great shortcomings of the American labor market.

The commission estimates that about 30 million Americans, 18% of the entire workforce, are subject to non-compete clauses and that the average wage increase from this measure will be about $524 a year.

The new rule will come into effect within 120 days after its publication in the Federal Register, although it is possible that employers or companies may oppose this rule in court to prevent its implementation.