FTC ANNOUNCES NONCOMPETE FINAL RULE UNVEILING AND VOTE
H. William (Bill( Constangy
For over a year the FTC has been dangling the prospect of seizing national control of employment noncompete agreements, preempting all state legislation, and banning most, if not all, such agreements. The cost, elaborate display of power, exercise of control and reach of such action, combined with massive bureaucratic expansion to implement, administer, investigate and adjudicate such a prohibition is mind boggling. Over a year has elapsed since the FTC proposed such a rule in January, 2023, and now the big day is coming for unveiling and voting on a final rule. Flexing its muscle, in advance of the US Supreme Court’s pending decision in Loper Bright Enterprises v. Raimondo, (a case argued before the Supreme Court in January 2024), that may revoke or seriously modify the Chevron Doctrine of judicial deference to federal agency statutory interpretation, and prior to the results of the 2024 Presidential Election, the FTC announced on Tuesday, April 16, that it will hold an open, virtual Commission Hearing on Tuesday, April 23, 2024, to proclaim and vote on its Final Noncompete Rule. A fierce legal battle will surely be joined soon thereafter, spawning interesting days ahead, which may not only determine the future of noncompetes but also shift sails of the ever expanding federal administrative state.
H. William Constangy is the author of NONCOMPETE LAW, 2024 edition, a national legal treatise, published by LexisNexis/Matthew Bender, a retired NC Superior Court Judge and an active Arbitrator in Charlotte, NC.
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