Biden administration faces wave of lawsuits as business groups challenge regulatory overreach

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, a decision that has sparked controversy and led to swift backlash from business groups. One such group, the U.S. Chamber of Commerce, is taking legal action against the Biden administration over this new regulation, along with several other industry lobbying groups who believe that the agencies have overstepped their authority.

This rule is just one of seven that the administration has finalized this year on various topics, including independent contractors and climate disclosure requirements, all of which have been met with legal challenges. The Chamber plans to file a total of 22 lawsuits against the Biden administration before the end of his current term, a significant increase from previous administrations.

In addition to the Chamber, the American Bankers Association has also joined multiple lawsuits against banking regulators, arguing that certain regulations exceed agency authority. Despite the pushback, White House assistant press secretary Michael Kikukawa has defended the administration’s regulations, stating that they ultimately benefit American workers and families by improving wages, lowering costs, and creating a fairer economy.

Neil Bradley, the Chamber’s executive vice president, has expressed concerns about the high volume of regulations proposed by the Biden administration, noting that they could have significant economic impacts that need to be carefully considered. As the legal battles continue to unfold, it remains to be seen how these regulations will shape the future of various industries and the economy as a whole.