MFA files amicus brief against the FTC non-compete ban

MFA submits an amicus brief to the United States District Court, Northern District of Texas, Dallas Division in support of the U.S. Chamber of Commerce, Business Roundtable, Texas Association of Business, and Longview Chamber of Commerce, opposing the the FTC final rule banning nearly all noncompete agreements in the U.S. (89 Fed. Reg. 38,342).  

The letter, submitted alongside three other firms, highlights crucial details MFA believes  the FTC should be aware of: 

  • In response to the Rule, employers in the industry would likely change their business practices to account for the Rule in ways that would reduce productivity and ultimately harm the industry. 
  • Employers share information with employees more readily when they can rely on noncompete agreements.  
  • Employers in the industry also typically pay employees for not competing during their noncompete period, even if those individuals work for other companies or organizations that do not compete with the employers. 
  • The Rule likely would force employers to re-negotiate existing agreements to include new provisions to safeguard confidential information, which could leave employees worse off than they were before.