FTC Non-Compete Ban Slammed by Business Groups as ‘Unworkable’

A slew of business groups joined the US Chamber of Commerce in opposing the Federal Trade Commission’s proposal to ban non-compete agreements, arguing it would limit their ability to protect confidential information.

At a virtual forum hosted by the agency on Thursday, dozens of trade groups representing human resources professionals, retailers, for-profit hospitals, asset managers, insurance brokers, truck stops and others argued the FTC’s draft rule is overly broad. They said it should be narrowed to allow for non-compete clauses for executives and employees with sensitive information like customer lists.

“This one-size-fits-all proposal is unworkable and has the power ...