In recent times, the Biden administration’s implementation of new regulations has triggered a wave of legal actions from business entities, challenging perceived regulatory overreach.
Following the Federal Trade Commission’s enforcement of a rule prohibiting noncompete clauses earlier this month, the response was immediate: Within a day, the U.S. Chamber of Commerce and several business organizations filed a lawsuit seeking to block the ban, arguing that the FTC exceeded its authority in imposing it.
This pattern has become routine: The Biden administration introduces a new regulatory measure impacting businesses, prompting swift legal challenges from entities like the Chamber and industry lobbying groups, alleging governmental overreach.
Since the beginning of the year, the administration has finalized seven rules addressing various issues such as independent contractors, credit card late fees, and climate disclosure requirements. However, these initiatives have often been met with immediate litigation from the Chamber and similar organizations.
The Chamber anticipates lodging a total of at least 22 lawsuits against the Biden administration by the end of President Joe Biden’s current term, marking a significant increase compared to previous administrations.
The American Bankers Association (ABA), another influential lobbying group, has also joined legal challenges against banking regulators, marking a departure from its previous litigation trends.
While litigation is viewed as a last resort, both the Chamber and the ABA argue that it becomes necessary when regulatory agencies exceed their designated authority.
Despite disagreements over specific regulations, the overarching concern among business groups is the direction of regulatory policy under the current administration. Total private-sector regulations have increased under Biden, prompting scrutiny from regulatory critics.
As businesses navigate regulatory uncertainties, concerns persist about the impact of shifting regulatory frameworks on investment decisions and operational costs.
