Comment Letter on Proposed Rule on Non-Compete Clauses (Docket FTC-2023-0007)
Comment Letter on Proposed Rule on Non-Compete Clauses (Apr. 19, 2023), https://www.regulations.gov/comment/FTC-2023-0007-19808
Loyola Law School, Los Angeles Legal Studies Research Paper No. 2023-37
11 Pages Posted: 2 Nov 2023 Last revised: 15 Nov 2023
Date Written: 2023
Abstract
This is an informational, annotated version of the comment submitted by the authors in support of the Federal Trade Commission’s notice of proposed rulemaking (“NPRM”) banning employee noncompetes and related instruments. It argues that nothing short of a full ban will prevent the misuse of noncompetes for illegitimate purposes and the anticompetitive harms associated with their use. Part I provides background explaining how noncompetes contravene fundamental legal principles. Part II explains the importance of a complete ban on noncompetes and the limits of lesser approaches. Part III responds to common arguments levied against the FTC’s proposed rule. Part IV briefly addresses the FTC’s authority for the NPRM. The authors conclude that the FTC’s ban is a lawful, necessary, and long overdue agency action.
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