{"id":21744,"date":"2024-04-24T03:16:59","date_gmt":"2024-04-24T03:16:59","guid":{"rendered":"https:\/\/www.thinkadvisor.com\/2024\/04\/23\/ftc-issues-worker-non-compete-ban\/"},"modified":"2024-04-24T03:16:59","modified_gmt":"2024-04-24T03:16:59","slug":"ftc-bans-worker-non-compete-rules","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2024\/04\/24\/ftc-bans-worker-non-compete-rules\/","title":{"rendered":"FTC Bans Worker Non-Compete Rules"},"content":{"rendered":"
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Tuesday\u2019s vote fell along partisan lines with the FTC\u2019s three Democrats in favor and the agency\u2019s Republicans opposed.<\/p>\n

Melissa Holyoak, the former solicitor general of Utah who joined the agency last month, said she was opposed to the rule because there was \u201cno clear congressional authorization\u201d for the FTC to issue it.<\/p>\n

Republican Andrew Ferguson also voted against the rule, saying he was sympathetic to the policy in the rule but doesn\u2019t believe courts will uphold the FTC\u2019s rulemaking authority.<\/p>\n

\u201cThe administrative state cannot legislate because Congress declines to do so,\u201d Ferguson said.<\/p>\n

In a call with reporters Monday, the Chamber\u2019s Chief Policy Officer Neil Bradley said the FTC doesn\u2019t have the authority to issue the rule.<\/p>\n

\u2018Micromanaging\u2019 Economy<\/h2>\n

The rule \u201copens up a Pandora\u2019s box where this commission or future commissions could be literally micromanaging every aspect of the economy,\u201d Bradley said. \u201cAgencies can\u2019t exercise authority that Congress hasn\u2019t given them. Congress has not given the FTC the ability to write regulations with respect to competition.\u201d<\/p>\n

The agency\u2019s Democrats, however, maintain that the FTC does have authority to issue rules defining unfair methods of competition.<\/p>\n

The final rule also rejected the idea that the agency doesn\u2019t have the authority to issue the rule because it represents a \u201cmajor question,\u201d citing a 1973 case that upheld the agency\u2019s rulemaking authority.<\/p>\n

The Supreme Court\u2019s conservative majority has shown deep skepticism toward what it views as agency overreach. In a 2022 case involving efforts to stifle greenhouse gas emissions from power plants, a sharply divided court said regulators must have clear congressional authorization before acting on \u201cmajor questions.\u201d<\/p>\n

The last time the FTC issued a standalone rule defining an unfair method of competition was in 1968, known as the Men and Boy\u2019s Tailored Clothing Rule. The rule, repealed in 1994, required clothing companies to provide equal treatment in promotions to all sellers.<\/p>\n

The agency has issued dozens of other rules that rely both on its unfair methods of competition authority and its ability to define unfair or deceptive practices.<\/p>\n

\u201cThe FTC has some good arguments on why this isn\u2019t a major question but a topic that fits comfortably in its authority,\u201d said Sandeep Vaheesan, a lawyer with advocacy group Open Markets Institute who filed the initial petition for a non-compete ban in 2019.  \u201cIf this isn\u2019t a restraint of trade, what is?\u201d<\/p>\n

Credit: Diego M. Radzinschi\/ALM<\/em><\/p>\n

Copyright 2024 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.<\/p>\n","protected":false},"excerpt":{"rendered":"

Tuesday\u2019s vote fell along partisan lines with the FTC\u2019s three Democrats in favor and the agency\u2019s Republicans opposed. Melissa Holyoak, the former solicitor general of Utah who joined the agency last month, said she...<\/p>\n","protected":false},"author":1,"featured_media":21745,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[1],"jetpack_featured_media_url":"https:\/\/blog.lifeinsurance-orleans.ca\/wp-content\/uploads\/2024\/04\/ftc-bans-worker-non-compete-rules.jpg","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/21744"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=21744"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/21744\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media\/21745"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=21744"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=21744"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=21744"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}