Senators Release Report from Government Watchdog on the Prevalence and Economic Effects of Noncompete Agreements Amid Intensifying Federal and State Efforts to Restrict Use

On May 17, 2023, US Senator Rob Wyden (D-OR) announced the release of a long-awaited report on the US Government Accountability Office’s multi-year investigation into the use of noncompete agreements across the US labor market. In announcing the release, Senator Wyden said that the GAO report “highlights the problems of noncompete agreements – particularly their impact on limiting workers’ fundamental freedom to change jobs,” and pledged to “fight tooth and nail for fair labor laws that protect workers and promote the creation of new businesses in Oregon and nationwide.” In March 2019, Wyden and a bipartisan group of US senators…

100 Industry Organizations Request Extension of Comment Period on FTC’s Proposed Noncompete Ban

As we predicted, earlier today, 100 industry organizations submitted a request to the Federal Trade Commission (FTC) to extend the comment period for its proposed rule banning non-competes nationwide by an additional 60 days. According to the letter, “[t]he regulated community should be given sufficient time to assess the potential consequences of the rulemaking and develop insightful comments for the Commission to consider.” The letter further states: This rulemaking, as the FTC itself acknowledges, will impact a significant portion of the economy. Given the breadth of the rules, a sufficient comment period is needed to ensure the regulated community can…