On Feb. 2, the Federal Trade Commission announced it will host a public forum examining the FTC’s proposed rule to prohibit employers from imposing noncompetes on their workers.

According to the press release, the forum will be held virtually on Feb. 16 from 12 to 3 p.m. EDT. It will be webcast on the FTC’s website, transcribed, posted online and included as part of the public record. The FTC will hear from a series of speakers who have been subjected to noncompete restrictions, as well as business owners who have experience with noncompetes. Members of the public will have an opportunity to comment via livestream and can sign up to speak through a webform. Speakers will be heard on a first-come first-serve basis during the time available.

ABC plans to participate in the forum, expressing serious concerns about the FTC’s unprecedented proposal to ban all noncompete agreements. Learn more about the forum.

Background:

On Jan. 5, the FTC issued a proposed rule that would ban all noncompete agreements with limited exceptions. According to the FTC, the proposed rule would make it illegal for an employer to:

• Enter into or attempt to enter into a noncompete with a worker;
• Maintain a noncompete with a worker; or
• Represent to a worker, under certain circumstances, that the worker is subject to a noncompete.

On Jan. 31, 100 organizations, including ABC, signed a letter urging the FTC to extend the comment deadline by 60 days. ABC will be commenting in opposition to the proposed rule, which is overly restrictive on well-established and reasonable business practices in the construction industry.

On Feb. 2, ABC hosted a webinar to highlight how the proposed rule will impact members and why the FTC’s action is constitutionally suspect and open to a strong legal challenge.