SBE Council Statement on FTC’s Ban of Employer Non-Compete Agreements

By SBE Council at 23 April, 2024, 6:52 pm

NEWS

For Immediate Release

Washington, D.C. - Small Business & Entrepreneurship Council president & CEO Karen Kerrigan issued the following statement in response to today's action by the Federal Trade Commission (FTC) that bans the use of employer non-compete agreements.

"Today's action banning the use of non-compete agreements is not only uninformed and economically damaging, it's illegal. The FTC lacks the constitutional and statutory authority to take such action. Even so, and after hearing from the small business community about the damaging effects of a total ban, the FTC pushed forward. Make no mistake, a ban will hit startups and small businesses hard. Small firms use non-competes for a range of appropriate businesses purposes, such as to protect their intellectual property and guard sensitive company information. SBE Council looks forward to working with Congress and our allies in the business community to aggressively push back against this illegal and misguided ban."

"Unfortunately, today's action adds to an alarming pattern of dubious activity undertaken by the FTC under Chair Lina Kahn. This activity is undermining America's startup and small business community. From regulatory measures that take direct aim at our successful M&A ecosystem, to the filing of unsubstantiated lawsuits against companies that help small businesses compete and thrive in the marketplace, to efforts targeting America's successful franchise system and more, Chair Khan sees boogeymen and injustices that do not exist. The total ban on employer non-competes is sadly another example of an ideological cause that will expend significant tax dollars and private sector resources toward a wasteful effort."

CONTACT:

Karen Kerrigan, [email protected]

SBE Council is a nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For nearly 30 years, SBE Council has worked on and advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth.

Visit www.sbecouncil.org for additional information. Twitter: @SBECouncil

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