IA Reacts to New FTC Ban on NonCompete Agreements in Employment Contracts - Articles

Articles

24Apr

IA Reacts to New FTC Ban on NonCompete Agreements in Employment Contracts

A new rule from the Federal Trade Commission (FTC) prohibits almost all non-compete agreements in employment contracts.

The Insights Association, the leading nonprofit trade association for the insights industry, expressed appreciation for the agency heeding some of the industry’s concerns, despite the divisive result.

“We are glad the FTC recognized the importance of these agreements in limited circumstances, such as with some senior executives, as IA highlighted in our comments,” said Howard Fienberg, Senior VP Advocacy for the Insights Association. “However, the sweeping nature of the new rules will significantly shake up labor markets in the insights industry.”

The agency said it received over 26,000 public comments, mostly opposed to non-compete agreements. The FTC says it heard and rejected business justifications for noncompete agreements, declaring that "noncompetes are an unfair method of competition."

In a change from the earlier draft rules which IA had urged be made “as specific and measured as possible,” the new rules will allow existing noncompetes to remain in effect for senior executives. Once the rule comes into effect in four months, almost no noncompete agreements will be allowed in the United States for any worker (except for those existing noncompetes for senior executives).

Melanie Courtright, CEO of the Insights Association, commented that, “The traditional business practice of non-compete agreements has not sufficiently evolved to the satisfaction of government or society. The time has come for us to reconsider these practices and err on the side of attracting and enabling people to work and stay in market research and analytics. While we recognize that this transition may be challenging for some IA members, our reputation and our future viability will benefit if, as an industry, we enable people to pursue their livelihood and provide for their families.”

Fienberg concluded that, “IA will be in touch with our membership in the coming days to explain compliance, including the details of the new noncompete ban, how it will impact trade secret protections, non-solicitation agreements and non-disclosure agreements, and the expectations of future legal challenges to the FTC rule.”

About the Author

Howard Fienberg

Howard Fienberg

Based in Washington, DC, Howard is the Insights Association's lobbyist for the marketing research and data analytics industry, focusing primarily on consumer privacy and data security, the Telephone Consumer Protection Act (TCPA), tort reform, and the funding and integrity of the decennial Census and the American Community Survey (ACS). Howard has more than two decades of public policy experience. Before the Insights Association, he worked in Congress as senior legislative staffer for then-Representatives Christopher Cox (CA-48) and Cliff Stearns (FL-06). He also served more than four years with a science policy think tank, working to improve the understanding of scientific and social research and methodology among journalists and policymakers. Howard is also co-director of The Census Project, a 900+ member coalition in support of a fair and accurate Census and ACS. He has also served previously on the Board of Directors for the National Institute for Lobbying and Ethics and and the Association of Government Relations Professionals. Howard has an MA International Relations from the University of Essex in England and a BA Honors Political Studies from Trent University in Canada, and has obtained the Certified Association Executive (CAE), Professional Lobbying Certificate (PLC) and the Public Policy Certificate (PPC). When not running advocacy for the Insights Association, Howard enjoys hockey, NFL football, sci-fi and horror movies, playing with his dog, and spending time with family and friends.

Related

Federal Court Puts Hold on FTC Non-Competes Rule

Federal Court Puts Hold on FTC Non-Competes Rule

A new court decision suggests that the Federal Trade Commission (FTC) rules banning most non-compete...

Read More >
Fighting for You: May 2024 Legislative and Regulatory Update

Fighting for You: May 2024 Legislative and Regulatory Update

With summer almost upon us, the Insights Association focused this month on a new U.S. law prohibitin...

Read More >
New FTC Rule Bans Noncompete Agreements in Employment Contracts - Compliance Details

New FTC Rule Bans Noncompete Agreements in Employment Contracts - Compliance Details

​​​​​​​New regulations from the Federal Trade Commission (FTC) will prohibit most non-compete...

Read More >
Fighting for You: April 2024 Legislative and Regulatory Update

Fighting for You: April 2024 Legislative and Regulatory Update

The first full month of spring brought with it a shiny new federal privacy bill, some developments o...

Read More >
Fighting for You: January 2024 Legislative and Regulatory Update

Fighting for You: January 2024 Legislative and Regulatory Update

Kicking off another year of advocacy for the insights industry, the Insights Association focused in ...

Read More >
New York A. 8179 Would Tax Firms for Replacing Jobs with AI, Algorithms or Apps

New York A. 8179 Would Tax Firms for Replacing Jobs with AI, Algorithms or Apps

The Robot Tax Act (A. 8179) would impose a tax surcharge on “using technology to displace workers.”...

Read More >
Members only Article - Please login to view