March ’23 at-a-glance … regulations
NAFEM opposes proposed ban on noncompete agreements
The U.S. Federal Trade Commission (FTC) is seeking comments on its proposed rule that would ban employers from requiring non-compete agreements from workers, including employees, independent contractors and unpaid workers like interns and volunteers. FTC asserts that “noncompetes constitute an unfair method of competition and therefore violate Section 5 of the Federal Trade Commission Act.”
During its March 8 Wednesday webcast, NAFEM polled participants about whether they use noncompete agreements and if NAFEM should act with other organizations to address this issue. The majority responding both use noncompetes and said NAFEM should engage on this issue. Already, NAFEM joined other U.S. Chamber of Commerce members in opposing the proposal. “As the FTC’s own economist, John McAdams, recently explained, noncompetes allow firms to reduce recruitment and training costs by lowering turnover, encourage firms to offer higher wages to compensate new employees, and increase the returns to research and development, thereby promoting innovation.” Details for submitting comments, which are due April 19, are included in the link above.