FTC Considers Regulating Non-Competes At Workshop

Although non-competes are generally viewed as matters governed by state law, the issue is increasingly under the scrutiny of federal lawmakers and regulators.  The FTC has been studying non-compete clauses and their impact on competition for months, and on January 9, 2020, the Commission held a workshop on the topic.  Experts, law professors, labor leaders, and Commissioners from both sides of the political spectrum spoke and urged action on non-compete clauses.

We listened in on the hearings and here are our key takeaways:

1. Commissioners Believe Non-Competes Are a Competition Issue

Commissioner Phillips (R) and Commissioner Slaughter (D) both argued that America has a labor mobility problem, and non-competes are a contributing factor.  Both Commissioners urged more investigation, and some participants argued non-competes should be evaluated under the FTC's authority to prevent unfair methods of competition.