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Biden administration faces lawsuits over regulatory decisions



Last Updated on April 30, 2024 by Robert C. Hoopes

The Federal Trade Commission recently made headlines after finalizing a rule that bans noncompete clauses, sparking controversy and backlash from business groups across the country. The U.S. Chamber of Commerce, a prominent industry organization, even went as far as leading a lawsuit to block the ban, arguing that the FTC had overstepped its authority in implementing such a rule.

This move is just one of many challenges the Biden administration has faced from industry lobbying groups regarding new regulations. Lawsuits have been filed on various topics, including regulations on independent contractors, credit card late fees, and climate disclosure requirements. In fact, the Chamber intends to file a whopping 22 lawsuits against the Biden administration before the end of President Biden’s current term.

Notably, the American Bankers Association has also joined the fray, signing on to four lawsuits against banking regulators since September 2022. This surge in litigation represents a significant increase from previous years and underscores the growing tensions between industry groups and regulatory agencies.

Both the Chamber and the ABA argue that litigation is a last resort when agencies exceed their authority in issuing regulations. On the other hand, the White House has defended the regulations, stating that they aim to benefit American workers and families by increasing wages, lowering costs, saving lives, and fostering a fairer economy.

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The Chamber, however, insists that the issue goes beyond any individual regulations, pointing to the sheer volume of regulations being finalized this year and their potential economic impact. As this legal battle continues to unfold, it remains to be seen how these conflicts will ultimately shape the regulatory landscape and impact businesses and workers nationwide. Stay tuned for more updates on this ongoing saga on My MBA Career.

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