The Chamber, in its submission to the FTC on employer noncompete agreements, supported the FTC’s current approach, which focuses on empirical study and case-by-case enforcement rather than broad rulemaking.
The Chamber highlighted the legitimate role noncompete agreements play in protecting intellectual property, fostering innovation, and encouraging investment in employees. These agreements, when reasonable and tailored, help businesses safeguard sensitive information and maintain competitive advantages while also benefiting employees through increased training opportunities and stability.
The submission emphasized that concerns about noncompetes should primarily be addressed through state legislatures and courts, which are better equipped to balance the interests of employers, employees, and local economies. The Chamber also cautioned the FTC to limit its enforcement to cases with clear evidence of anticompetitive harm, ensuring that legitimate uses of noncompetes are not hindered.
