FTC’s Vague Non-Compete Rule a Bad Deal for Main Street

Date: April 25, 2024

Final rule limits contract language to the detriment of employers

WASHINGTON, D.C. (April 25, 2024) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, issued the following statement on behalf of Beth Milito, Executive Director of NFIB’s Small Business Legal Center, regarding the U.S. Federal Trade Commission’s (FTC) final rule on non-compete clauses.

“Without teams of compliance officers and lawyers at their disposal, this rule’s vaguely defined and open-ended terms will be a compliance nightmare for small business owners.  Beyond the task of upending how they approach hiring and training new employees, owners will need to tediously study existing contracts to properly alert current employees of these changes, or risk being penalized. This rule is yet another example of federal agencies misrepresenting the needs of small businesses and underreporting the impact a regulation will have on Main Street firms.”

NFIB previously filed a comment letter opposing the FTC’s proposed rule.

The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.

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