Federal trade regulators will decide sometime next spring whether to implement a proposed ban on noncompete agreements. The Federal Trade Commission last spring received more than 21,000 comments from business organizations, trade associations, individuals and even attorneys general across the U.S. about the possible changes.
Mark Smith, a partner at Grand Rapids-based Rhoades McKee PC who co-chairs the law firm’s employment law practice group, spoke with Crain’s Grand Rapids Business about the rule that was proposed in early 2023 and what the FTC may do.
Keep up with all things West Michigan business. Sign up for our free newsletters today.
Where does the FTC proposal on non-compete agreements sit right now?
It’s just been disclosed … that they are going to delay the issuance of their final rule until April of next year. They got so many comments that they simply can’t move into the final rule-making as quickly as they had hoped to do.
Why do you think there were so many comments and so many people interested in the proposal?
They got them from both sides: Those that wanted to enforce and those that think that noncompetes are the worst thing ever.
The major trade associations and business interests and chambers of commerce and others weighed in early and often, alleging that the FTC didn’t have the power to take on noncompetes. They didn’t think it was within the scope of their jurisdiction. Then substantively they weighed in that noncompetes serve a legitimate interest...
New York announced a $4.5 million settlement on Friday with a travel booking company and three of its affiliates following a tax fraud investigation initiated by a whistleblower under the state’s ...