US Small Business Administration joins NNA in opposition to FTC non-compete ban

Apr 1, 2023

As reported last month, NNA has participated in efforts to oppose the Federal Trade Commission’s ban on non-compete agreements. We have learned that the Small Business Administration Office of Advocacy has also weighed in with concerns about the ban, as detailed below:

  • On January 19, 2023, the Federal Trade Commission published a notice of proposed rulemaking for the Non-Compete Clause Rule. The proposed rule would make it an unfair method of competition for an employer to enter into or attempt to enter into a non-compete clause with a worker; to maintain with a worker a non-compete clause; or, under certain circumstances, to represent to a worker that the worker is subject to a non-compete clause. The proposed rule will require employers to rescind current non-compete clauses and will not apply to franchisees.
  • On March 20, 2023, the SBA Office of Advocacy submitted comments on the Federal Trade Commission’s notice of proposed rulemaking on the Non-Compete Clause Rule.

For more, read the public comment letter and fact sheet, which highlight Advocacy’s concerns and recommendations or please contact Jennifer A. Smith at