Federal Trade Commission Appeals Ban on Noncompete Agreements

Last week, the Federal Trade Commission (FTC) appealed a federal court ruling that blocked its proposed ban on noncompete agreements for employers. This action comes after Judge Ada Brown of the U.S. District Court for the Northern District of Texas determined that the FTC exceeded its authority in implementing the ban. Her ruling expanded to apply to all employers.

HCAOA opposed the rule during the administrative phase and filed an amicus brief. More information on both can be found here. 

Originally set to take effect on September 4, the FTC's rule aimed to prohibit noncompete clauses in most cases, potentially affecting around 30 million workers. The agency argues that banning these agreements could lead to increased wages, foster innovation, and support the growth of start-up companies. The FTC contends that its initiative is within its mandate to prevent unfair competition, emphasizing the need for compliance with state laws and careful drafting of restrictive covenants as regulatory scrutiny increases.

As HCAOA has previously noted, non-compete clauses are rare in-home care employment agreements; however, HCAOA will continue to monitor this issue and keep members updated as additional information becomes available.

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