{"id":745,"date":"2024-04-26T16:34:21","date_gmt":"2024-04-26T16:34:21","guid":{"rendered":"http:\/\/ics-compliance.com\/?p=745"},"modified":"2025-07-24T02:53:42","modified_gmt":"2025-07-24T02:53:42","slug":"ftc-issues-worker-non-compete-ban-as-chamber-lawsuit-looms","status":"publish","type":"post","link":"https:\/\/ics-compliance.com\/es\/2024\/04\/26\/ftc-issues-worker-non-compete-ban-as-chamber-lawsuit-looms\/","title":{"rendered":"FTC Issues Worker Non-Compete Ban as Chamber Lawsuit Looms"},"content":{"rendered":"

[et_pb_section fb_built=”1″ fullwidth=”on” _builder_version=”4.21.2″ vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” global_colors_info=”{}”][et_pb_fullwidth_header title=”ICS Insights” subhead=”FTC Issues Worker Non-Compete Ban as Chamber Lawsuit Looms” header_fullscreen=”on” header_scroll_down=”on” scroll_down_icon_color=”#ffffff” scroll_down_icon_size=”20px” content_max_width=”670px” _builder_version=”4.27.4″ title_font=”DM Serif Display||||||||” title_text_color=”#FFFFFF” title_font_size=”70px” subhead_font=”DM Serif Display||||||||” subhead_text_color=”#fefefe” subhead_font_size=”19px” background_image=”https:\/\/ics-compliance.com\/wp-content\/uploads\/2023\/08\/insight-2023-jpg.webp” custom_button_one=”on” button_one_text_size=”12px” button_one_text_color=”#ffffff” button_one_border_width=”0px” button_one_border_radius=”0px” button_one_icon=”%%20%%” button_one_icon_placement=”left” button_one_on_hover=”off” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ hover_enabled=”0″ z_index_tablet=”0″ title_text_shadow_horizontal_length_tablet=”0px” title_text_shadow_vertical_length_tablet=”0px” title_text_shadow_blur_strength_tablet=”1px” content_text_shadow_horizontal_length_tablet=”0px” content_text_shadow_vertical_length_tablet=”0px” content_text_shadow_blur_strength_tablet=”1px” subhead_text_shadow_horizontal_length_tablet=”0px” subhead_text_shadow_vertical_length_tablet=”0px” subhead_text_shadow_blur_strength_tablet=”1px” content_link_text_shadow_horizontal_length_tablet=”0px” content_link_text_shadow_vertical_length_tablet=”0px” content_link_text_shadow_blur_strength_tablet=”1px” content_ul_text_shadow_horizontal_length_tablet=”0px” content_ul_text_shadow_vertical_length_tablet=”0px” content_ul_text_shadow_blur_strength_tablet=”1px” content_ol_text_shadow_horizontal_length_tablet=”0px” content_ol_text_shadow_vertical_length_tablet=”0px” content_ol_text_shadow_blur_strength_tablet=”1px” content_quote_text_shadow_horizontal_length_tablet=”0px” content_quote_text_shadow_vertical_length_tablet=”0px” content_quote_text_shadow_blur_strength_tablet=”1px” button_one_text_shadow_horizontal_length_tablet=”0px” button_one_text_shadow_vertical_length_tablet=”0px” button_one_text_shadow_blur_strength_tablet=”1px” button_two_text_shadow_horizontal_length_tablet=”0px” button_two_text_shadow_vertical_length_tablet=”0px” button_two_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” box_shadow_horizontal_image_tablet=”0px” box_shadow_vertical_image_tablet=”0px” box_shadow_blur_image_tablet=”40px” box_shadow_spread_image_tablet=”0px” box_shadow_horizontal_button_one_tablet=”0px” box_shadow_vertical_button_one_tablet=”0px” box_shadow_blur_button_one_tablet=”40px” box_shadow_spread_button_one_tablet=”0px” box_shadow_horizontal_button_two_tablet=”0px” box_shadow_vertical_button_two_tablet=”0px” box_shadow_blur_button_two_tablet=”40px” box_shadow_spread_button_two_tablet=”0px” text_shadow_horizontal_length_tablet=”0px” text_shadow_vertical_length_tablet=”0px” text_shadow_blur_strength_tablet=”1px” global_colors_info=”{}” sticky_enabled=”0″][\/et_pb_fullwidth_header][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text disabled_on=”on|on|on” admin_label=”Text JC” _builder_version=”4.22.2″ text_font=”DM Serif Display||||||||” text_text_color=”#9c9c9c” header_2_font=”DM Serif Display||||||||” header_2_text_color=”#293d93″ header_2_font_size=”50px” header_3_font=”DM Serif Display||||||||” header_3_text_color=”#02c39a” header_3_font_size=”19px” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” disabled=”on” global_colors_info=”{}”]<\/p>\n

Yesterday, the SEC finally approved the proposed changes to the Private Funds regulations.\u00a0<\/span>Below you will find the official news release and an attachment with the Key Changes.\u00a0<\/span><\/div>\n
<\/div>\n
Most of the changes\/updates will become effective in 12 to 18 months; however, the SEC is providing “legacy status” for existing funds solely for the prohibitions aspect of the Preferential Treatment Rule and the aspects of the Restricted Activities Rule that require\u00a0<\/span>investor consent.<\/span><\/div>\n
\u00a0<\/span><\/div>\n
We will be providing updates and guidance on how to comply with the new rule shortly.<\/span><\/div>\n
\u00a0<\/span><\/div>\n
Thanks, JC<\/span><\/div>\n

[\/et_pb_text][et_pb_button button_url=”https:\/\/ics-compliance.com\/wp-content\/uploads\/08\/ia-6383-fact-sheet.pdf” url_new_window=”on” button_text=”Download The Fact-Sheet” button_alignment=”left” disabled_on=”on|on|on” admin_label=”Button Fact Sheet Download” _builder_version=”4.22.2″ custom_button=”on” button_text_size=”13px” button_text_color=”#ffffff” button_bg_color=”#006daf” button_border_width=”0px” button_border_radius=”0px” button_icon=”%%20%%” button_icon_color=”#ffffff” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ hover_enabled=”0″ z_index_tablet=”0″ button_text_shadow_horizontal_length_tablet=”0px” button_text_shadow_vertical_length_tablet=”0px” button_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” disabled=”on” global_colors_info=”{}” sticky_enabled=”0″][\/et_pb_button][et_pb_text admin_label=” Text Post” _builder_version=”4.27.4″ text_font=”DM Serif Display||||||||” text_text_color=”#9c9c9c” header_2_font=”DM Serif Display||||||||” header_2_text_color=”#293d93″ header_2_font_size=”50px” header_3_font=”DM Serif Display||||||||” header_3_text_color=”#5c92c0″ header_3_font_size=”19px” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ hover_enabled=”0″ z_index_tablet=”0″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n

FTC Issues Worker Non-Compete Ban as Chamber Lawsuit Looms<\/strong><\/h3>\n
\n
by Bloomberg News. April 23, 2024<\/div>\n
The US Federal Trade Commission voted Tuesday to adopt a near-total ban on non-compete provisions that prohibit workers from switching jobs within an industry, a rule the Chamber of Commerce vowed to immediately challenge in court.<\/div>\n<\/div>\n
\n

The high-stakes legal showdown comes three years after President Joseph Biden signed an executive order encouraging the FTC to limit non-compete agreements, which affect roughly one in five Americans.<\/p>\n

\u201cRobbing people of their economic liberty also robs them of all sorts of other freedoms,\u201d Chair Lina Khan said Tuesday. Arguing that the FTC lacks \u201crulemaking authority requires ignoring the most straightforward reading of the\u201d law.<\/p>\n

\n
\n
\u201cWe need to be honoring what courts have said over what courts in the future might say,\u201d she added.<\/div>\n<\/blockquote>\n<\/div>\n

The antitrust and consumer protection agency voted 3-2 to issue a\u00a0final rule<\/a>\u00a0Tuesday after a nearly hour-long debate in an open meeting of the FTC\u2019s five commissioners. The proposal would ban most new non-compete agreements including those of senior executives.<\/p>\n

Existing non-competes for executives who earn more than $151,164 a year in a \u201cpolicy making position\u201d can remain in place.<\/p>\n

Existing non-competes with lower-level workers would become unenforceable after the rule goes into effect in six months. The agency estimated that it would increase US earnings by at least $400 billion over the next 10 years. The rule wouldn\u2019t apply to employees of not-for-profit entities or franchises.<\/p>\n

The Chamber of Commerce, the nation\u2019s largest business lobby, earlier told reporters it plans to sue over the rule as soon as Wednesday.<\/p>\n

UNION BACKING<\/h3>\n

The FTC first proposed a non-compete ban in January 2023, arguing the restrictions unfairly block workers from switching jobs and undermine labor competition. The proposal has the backing of labor organizations AFL-CIO and the Service Employees International Union, Democratic senators and attorneys general from California, Illinois and 17 other states. Of the 26,000 public comments the FTC received about the proposal, the agency said that 25,000 of them were in support of a ban.<\/p>\n

But business groups oppose the ban, arguing that it\u2019s overly broad and limits the ability of companies to protect confidential information.<\/p>\n

Tuesday\u2019s vote fell along partisan lines with the FTC\u2019s three Democrats in favor and the agency\u2019s Republicans opposed. Melissa Holyoak, the former solicitor general of Utah who joined the agency last month, said she was opposed to the rule because there was \u201cno clear congressional authorization\u201d for the FTC to issue it. Republican Andrew Ferguson also voted against the rule, saying he was sympathetic to the policy in the rule but doesn\u2019t believe courts will uphold the FTC\u2019s rulemaking authority.<\/p>\n

\u201cThe administrative state cannot legislate because Congress declines to do so,\u201d Ferguson said.<\/p>\n

In a call with reporters Monday, the Chamber\u2019s Chief Policy Officer Neil Bradley said the FTC doesn\u2019t have the authority to issue the rule.<\/p>\n

\u2018MICROMANAGING\u2019 ECONOMY<\/h3>\n

The rule \u201copens up a Pandora\u2019s box where this commission or future commissions could be literally micromanaging every aspect of the economy,\u201d Bradley said. \u201cAgencies can\u2019t exercise authority that Congress hasn\u2019t given them. Congress has not given the FTC the ability to write regulations with respect to competition.\u201d<\/p>\n

The agency\u2019s Democrats, however,\u00a0maintain that the FTC<\/a>\u00a0does have authority to issue rules defining unfair methods of competition. The final rule also rejected the idea that the agency doesn\u2019t have the authority to issue the rule because it represents a \u201cmajor question,\u201d citing a 1973 case that upheld the agency\u2019s rulemaking authority.<\/p>\n

The Supreme Court\u2019s conservative majority has shown deep skepticism toward what it views as agency overreach. In a 2022 case involving efforts to stifle greenhouse gas emissions from power plants, a sharply divided court said regulators must have clear congressional authorization before acting on \u201cmajor questions.\u201d<\/p>\n

The last time the FTC issued a standalone rule defining an unfair method of competition was in 1968, known as the Men and Boy\u2019s Tailored Clothing Rule. The rule, repealed in 1994, required clothing companies to provide equal treatment in promotions to all sellers. The agency has issued dozens of other rules that rely both on its unfair methods of competition authority and its ability to define unfair or deceptive practices.<\/p>\n

\u201cThe FTC has some good arguments on why this isn\u2019t a major question but a topic that fits comfortably in its authority,\u201d said Sandeep Vaheesan, a lawyer with advocacy group Open Markets Institute who filed the initial petition for a non-compete ban in 2019. \u00a0\u201cIf this isn\u2019t a restraint of trade, what is?\u201d<\/p>\n<\/div>\n

<\/div>\n
Credits: https:\/\/www.advisorhub.com\/ftc-issues-worker-non-compete-ban-as-chamber-lawsuit-looms\/<\/a><\/strong><\/div>\n

[\/et_pb_text][et_pb_button button_url=”https:\/\/ics-compliance.com\/wp-content\/uploads\/08\/ia-6383-fact-sheet.pdf” url_new_window=”on” button_text=”Download The Fact-Sheet” button_alignment=”left” disabled_on=”on|on|on” admin_label=”Button Fact Sheet Download” _builder_version=”4.22.2″ custom_button=”on” button_text_size=”13px” button_text_color=”#ffffff” button_bg_color=”#006daf” button_border_width=”0px” button_border_radius=”0px” button_icon=”%%20%%” button_icon_color=”#ffffff” button_rel=”off||||” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″ button_text_shadow_horizontal_length_tablet=”0px” button_text_shadow_vertical_length_tablet=”0px” button_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” disabled=”on” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"

The US Federal Trade Commission voted Tuesday to adopt a near-total ban on non-compete provisions that prohibit workers from switching jobs within an industry, a rule the Chamber of Commerce vowed to immediately challenge in court.<\/p>","protected":false},"author":1,"featured_media":746,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[10],"tags":[],"class_list":["post-745","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ics-insights"],"_links":{"self":[{"href":"https:\/\/ics-compliance.com\/es\/wp-json\/wp\/v2\/posts\/745","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ics-compliance.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ics-compliance.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ics-compliance.com\/es\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ics-compliance.com\/es\/wp-json\/wp\/v2\/comments?post=745"}],"version-history":[{"count":3,"href":"https:\/\/ics-compliance.com\/es\/wp-json\/wp\/v2\/posts\/745\/revisions"}],"predecessor-version":[{"id":865,"href":"https:\/\/ics-compliance.com\/es\/wp-json\/wp\/v2\/posts\/745\/revisions\/865"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ics-compliance.com\/es\/wp-json\/wp\/v2\/media\/746"}],"wp:attachment":[{"href":"https:\/\/ics-compliance.com\/es\/wp-json\/wp\/v2\/media?parent=745"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ics-compliance.com\/es\/wp-json\/wp\/v2\/categories?post=745"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ics-compliance.com\/es\/wp-json\/wp\/v2\/tags?post=745"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}