The Federal Trade Commission has extended the deadline for comments on its proposed noncompete rule. Those interested in submitting comments now have until April 19, the FTC said.
The proposed rule would prohibit employers from entering or attempting to enter a noncompete clause with a worker; maintaining a worker with a noncompete clause; or, in some cases, representing to a worker that they are subject to a noncompete clause.
Attorneys previously told HR Dive that the FTC’s proposal raised a number of questions for employers and demonstrated a worrying lack of focus and precision.
One FTC Commissioner, Trump appointee Christine Wilson, released a statement alongside the decision, noting that the agency received requests to extend the comment period for more than 60 days — as well as requests not to extend it at all. It settled on a 30-day extension. “Given that the proposed rule is a departure from hundreds of years of precedent and would prohibit conduct that 47 states allow, I would have supported extending the public comment by 60 days,” Wilson said.
Since the comment period opened in January, FTC has collected nearly 9,000 public comments.
“As a recruiter, I know how candidates hate noncompete clauses,” one commenter, Tricia Dolkas, said. “Getting rid of noncompete clauses would make hiring faster and more efficient and result in better hires for the company.”
Jeff Gibson, who described himself as a sales professional in the HR world, said a noncompete has limited his career opportunities. “I believe in employers of choice and a free market for the working person to be matched with these employers,” he said. “A move for no more ‘ownership’ of employees is a step in the right direction.”
On the other hand, some employers and business groups have expressed opposition to the rule. “Without clear direction from Congress, a federal agency has no business intervening in state law and interrupting state-governed contract law,” the St. Tammany Chamber of Commerce wrote in a letter attached to its comment submission. “Noncompete clauses, when appropriately used, help our state’s economy, businesses, and employees.”
