FTC Proposes Ban on Noncompete Agreements

SIGN-ON NOW: Stop the FTC from Banning Noncompete Agreements
Published by the U.S. Chamber of Commerce February 17, 2023

The Federal Trade Commission has proposed a rule to ban noncompete agreements for all employees and independent contractors, with no exceptions except in cases between a buyer and seller of a business.

Fill me in: The Federal Trade Commission lacks any statutory authority that even comes close to giving it the authority it claims to propose such a rule. This action by the FTC is blatantly unlawful.

What is Going on at the FTC?
Published by the U.S. Chamber of Commerce on February 16, 2023

The Chamber is calling for immediate Congressional oversight over the Federal Trade Commission.

The latest: On Valentine’s Day, Christine Wilson announced she would be resigning as commissioner on the Federal Trade Commission. Writing in the Wall Street Journal, she explained, “[Chair Lina Khan] has consolidated power within the Office of the Chairman, breaking decades of bipartisan precedent and undermining the commission structure that Congress wrote into law.”‌

  • Wilson concluded she could not enable the lawlessness emanating from the agency and that her conscious required her to resign.

Why it matters: Under the leadership of Chair Khan, the Federal Trade Commission has twisted and stretched the boundaries of antitrust law to, in her words, “shape the distribution of power and opportunity across our economy.” Current Federal Trade Commission leadership has led the agency down a path abandoning the limited Congressional authority delegated to it.

What we’re doing: The Chamber has been sounding the alarm on the FTC’s abuses. In January, Chamber President and CEO Suzanne P. Clark penned an op-ed for the Wall Street Journal on the agency’s illegal power grab banning noncompete agreements in employment contracts.

Bottom line: In light of the issues raised by Commissioner Wilson’s departure, Congress must refrain from granting the FTC any further rulemaking or enforcement authority until it conducts a thorough investigation and oversight and puts forward reasonable guardrails around its activity.

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