Title: Biden administration under scrutiny as business groups challenge regulatory actions

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

The Federal Trade Commission’s recent decision to ban noncompete clauses has sparked a flurry of backlash from business groups, with the U.S. Chamber of Commerce leading the charge. The Chamber has filed a lawsuit claiming that the FTC overstepped its boundaries in implementing the ban, marking a continued trend of legal pushback against new regulations put in place by the Biden administration.

Since the start of the year, the Biden administration has finalized seven new rules on various issues such as independent contractors and climate disclosure, all of which have been met with immediate lawsuits from industry lobbying groups. The Chamber has announced plans to file a total of 22 lawsuits against the administration before the end of Biden’s term, a marked increase from previous administrations.

Surprisingly, the American Bankers Association has also joined in on the legal challenges against banking regulators, ending a ten-year streak of abstaining from such lawsuits. Both the Chamber and the ABA view litigation as a last resort when they believe that agency regulations go beyond their legal authority.

On the other hand, the White House has defended the regulations as being within agency jurisdiction and beneficial to American workers and families. Despite this, the Chamber and other business groups argue that the sheer volume and economic impact of the regulations being implemented warrant legal action to protect businesses and the overall economy.

As the battle between business groups and the Biden administration continues to escalate, the future of these regulations and their impact on the business landscape remains uncertain. Stay tuned for updates on this ongoing legal saga on My MBA Career.