WASHINGTON—American Lodge & Lodging Affiliation (AHLA) Interim President and CEO Kevin Carey launched the next assertion after a federal decide in Texas blocked the Federal Commerce Fee (FTC) from imposing a rule that bans noncompete agreements:
“The FTC overstepped its authority by approving a rule that enables federal interference in multitudes of enterprise agreements throughout the nation. In doing so, the FTC set a harmful precedent for intruding into an space that has been regulated by the states all through our nation’s historical past,” stated Carey. “We applaud the decide’s determination and can proceed to help efforts to overturn the FTC’s unjustified and overly broad rule.”
On April 23, 2024, the FTC launched a remaining rule banning noncompete agreements, which was scheduled to take impact on September 4, 2024.
On April 24, 2024, a coalition of trade teams challenged that rule within the U.S. District Courtroom for the Jap District of Texas. The lawsuit argued that the rule exceeded the FTC’s authority and sought to ban a observe that has traditionally been ruled by state legislation.
AHLA and different enterprise teams filed an amicus transient in Might in help of the lawsuit. That transient stated the FTC’s rule ignores the greater than 200 years of state jurisdiction over noncompete agreements, upends corporations’ contractual relations with their workers, and makes it harder for corporations to guard their authentic enterprise pursuits.
On August 20, 2024, Choose Ada Brown blocked the FTC rule, a choice that can stop the FTC from implementing it, absent any potential FTC enchantment.
