Birbal Highlights HRPA Opposition to Blanket Non-Compete Ban in FTC Meeting

Chatrane Birbal, Vice President of Government Relations, HR Policy Association, underlined HRPA’s opposition to the proposed ban on non-compete agreements in a Federal Trade Commission open meeting.

Earlier this month, the Federal Trade Commission issued a proposed rule that would prohibit all non-compete agreements between an employer and employee. The proposed rule provides no exceptions except in cases between a buyer and seller of a business.  

“The Association and our member companies are concerned,” Ms. Birbal noted, “about the FTC’s recent proposal to ban the use of noncompete agreements in the employment context. We believe that non-compete clauses, when used responsibly, can help companies protect vital investments in their employees, while ensuring the security of research and development, trade secrets, and institutional knowledge. As such, we oppose a blanket restriction on the use of non-compete clauses in employment agreements, especially at senior executive levels.” 

Ms. Birbal also requested the FTC extend the comment period for the proposed rule for an additional 60 days, noting that, the rule will impact a significant portion of the economy, as the FTC itself has acknowledged.

HRPA will submit formal comments articulating our point of view and the impact the broad proposed rule would have on companies’ talent and compensation strategies.