ALEXANDRIA, VA -- Emily M. Dickens, SHRM Chief of Staff and Head of Government Affairs, issued the following statement in response to the Federal Trade Commission (FTC) appealing the decision made on August 20th, 2024, by the U.S. District Court for the Northern District of Texas on non-competes.
“SHRM respects the right of the FTC to pursue an appeal in the Ryan LLC v. FTC matter; however, we are optimistic that the Court of Appeals will reach a similar conclusion and set aside the attempt at a widespread ban on non-competes. As we have been from the very beginning, we stand ready to continue our advocacy efforts on this issue.
As with many other business practices, one size does not fit all, and the FTC’s rule imposed a sweeping ban on non-compete agreements, instead of taking a more measured approach to achieve what it initially tried to accomplish. The FTC’s failure to consider a less restrictive alternative, and the positive impact a fairly crafted non-compete agreement could have, has hurt both workers and the workplace.
SHRM has been firm in this position – from our April 2023 public comment and multiple amicus briefs – and we are ready to continue our advocacy in the court of appeals. We are hopeful the next court will quickly render a similar decision as the trial court, and we look forward to engaging with policymakers on all levels on this very important workplace issue.”