Republicans on the House Judiciary Committee are challenging the Federal Trade Commission’s (FTC) recent proposal of a national ban on non-compete agreements.
In a Feb. 14 letter to FTC Chair Lina Khan and other commissioners, Judiciary Committee Chair Jim Jordan (R-Ohio) and Reps. Darrell Issa (R-Calif.), Thomas Massie (R-Ky.), and Scott Fitzgerald (R-Wis.) argued that the proposed ban would not only be unlawful but would also “radically restructure the American economy.”
“The regulation would undermine the rule of law by invalidating tens of millions of existing contracts to which employers and employees voluntarily agreed,” the lawmakers wrote. “The rule is also inconsistent with tenets of federalism because it sets a one-size-fits-all approach that would outlaw practices that forty-seven states have deemed to be legal.”…