FTC Extends Comment Deadline on Noncompete Rule

Comments on the Federal Trade Commission’s proposed noncompete clause rulemaking will now be accepted until April 19. The FTC voted 4-0 yesterday to extend the public comment window by roughly 30 days; it was initially set to close on March 20. The controversial rule, based on the FTC’s interpretation of Section 5 of the Federal Trade Commission Act’s directive to prevent unfair competition, has already sparked an unorthodox forum and follows a shake up of the agency’s membership.

In a concurring statement following the vote, Commissioner Christine S. Wilson justified the decision to extend the deadline by stating, “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.”

Brownstein has written extensively on this topic, including an analysis of the proposed rule, an article about the forum mentioned above, a summary of the forum and an update on the renomination of Commissioner Rebecca Kelly Slaughter and the resignation of Commissioner Christine Wilson. If you would like any additional information on this rule or desire assistance drafting a comment, please do not hesitate to reach out to a member of the Brownstein Financial Services Team.

THIS DOCUMENT IS INTENDED TO PROVIDE YOU WITH GENERAL INFORMATION REGARDING THE EXTENDED DEADLINE FOR COMMENT ON THE FTC'S NONCOMPETE BAN. THE CONTENTS OF THIS DOCUMENT ARE NOT INTENDED TO PROVIDE SPECIFIC LEGAL ADVICE. IF YOU HAVE ANY QUESTIONS ABOUT THE CONTENTS OF THIS DOCUMENT OR IF YOU NEED LEGAL ADVICE AS TO AN ISSUE, PLEASE CONTACT THE ATTORNEYS LISTED OR YOUR REGULAR BROWNSTEIN HYATT FARBER SCHRECK, LLP ATTORNEY. THIS COMMUNICATION MAY BE CONSIDERED ADVERTISING IN SOME JURISDICTIONS.