When a CFR conflicts with the law and purports to rewrite state and federal laws (where non-competes are fully legal and have decades, if not centuries of precedence), it is venturing fully over into legislative territory.
You are being pretty shifty here. You were talking about laws congress passes, but now you are talking about precedent, which is something that happens in courts (the judicial branch). I'm getting the sense that you are a little mixup up on your civics.