This past week has seen a surge of amicus (friend of the court) briefs filed in the Ryan LLC v. FTC case in which the validity of the FTC’s noncompete ban is being litigated. One of the briefs recently submitted in support of the FTC’s rule was filed by U.S. Representative Matt Gaetz (R-Fla.). This is another example of at least some bipartisan support for regulation of the use of noncompetes.
Last year, U.S. Senator Chris Murphy (D-Conn.), along with the co-sponsorship of Senators Todd Young (R-IN), Tim Kaine (D-Va) and Kevin Cramer (R-N.D.), reintroduced the Workforce Mobility Act. This was the third time the bill was introduced with bipartisan sponsorship. The purpose of the bill is to prohibit noncompete agreements. The Workforce Mobility Act is not the only proposed bipartisan legislation addressing the use of noncompetes. U.S. Senator Marco Rubio (R-FL) with his co-sponsor Senator Margaret Hassan (D-NH) also introduced the Freedom to Compete Act in 2023 for a second time.
These developments demonstrate that even if the FTC’s ban is struck down, there is still the possibility of Congressional action either banning or limiting the use of noncompetes.
Stay tuned for more updates, and please reach out if you have questions.
Marissa Cripe, a summer associate at BFV, contributed to this article.
Benjamin Fink is known for his work in noncompete, trade secret and competition-related disputes. A shareholder at Berman Fink Van Horn, Ben concentrates his practice in business and employment litigation.
Neal Weinrich knows noncompetes and trade secrets inside and out. A shareholder at Berman Fink Van Horn, Neal counsels clients in all industries on matters involving restrictive covenants, trade secrets and other competition-related issues.
