US ban on worker noncompete agreements faces lawsuit from major business group

The U.S. Chamber of Commerce, the country's largest business lobby, filed a lawsuit on Wednesday seeking to strike down a federal agency's near-total ban on employers requiring workers to sign agreements not to join rivals or launch competing businesses.

The Chamber's lawsuit in federal court in Tyler, Texas, alleges that the U.S. Federal Trade Commission lacks the power to adopt sweeping rules such as the ban on so-called noncompete agreements released on Tuesday, which is set to take effect in August.