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ARTICLE · 31 MAY 2024

The World's Largest HR Organization Does NOT Support The FTC's Non-Compete Rule

Pierson Ferdinand LLP
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The Society for Human Resource Management (SHRM), with nearly 340,000 members in 180 countries (of which I am one), filed an amicus brief last week in a lawsuit pending in Texas...

United StatesEmployment and HR
Eric B. Meyer
Eric B. Meyer

The Society for Human Resource Management (SHRM), with nearly 340,000 members in 180 countries (of which I am one), filed an amicus brief last week in a lawsuit pending in Texas in which it supported efforts to block the Federal Trade Commission's final non-compete Rule. The FTC seeks to impose a comprehensive ban on new non-competes with all workers, including senior executives.

Although SHRM does not oppose the use of "reasonable, narrowly tailored non-compete agreements," it is concerned a "blanket ban" will "stifle innovation, limit training opportunities and harm business and workers alike." Consequently, SHRM has asked the court to grant the plaintiff's motion for an injunction and offers four supporting arguments.

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