Published January 05, 2023
Washington, D.C. – Sean Heather, U.S. Chamber senior vice president for International Regulatory Affairs and Antitrust released the following statement today regarding the FTC’s proposed rulemaking on employer noncompete clauses:
“Today’s actions by the Federal Trade Commission to outright ban noncompete clauses in all employer contracts is blatantly unlawful. Since the agency’s creation over 100 years ago, Congress has never delegated the FTC anything close to the authority it would need to promulgate such a competition rule. The Chamber is confident that this unlawful action will not stand.
“Attempting to ban noncompete clauses in all employment circumstances overturns well-established state laws which have long governed their use and ignores the fact that, when appropriately used, noncompete agreements are an important tool in fostering innovation and preserving competition.”