The Federal Trade Commission will vote Apr. 23 on whether to issue a final rule that bans nearly all noncompete agreements and preempts inconsistent state laws. The FTC does not have jurisdiction over banks, but it does have authority over bank affiliates.
Last April, ABA joined the U.S. Chamber of Commerce and nearly 300 national, state, and local trade associations and chambers of commerce in a comment letter that expressed the associations’ opposition to the FTC’s proposal. The groups asserted that noncompete agreements serve pro-competitive interests by encouraging investment in employees and helping companies protect their intellectual property. The groups also contended that the FTC lacks the statutory authority to issue a rule, among other arguments the groups made.
