FTC Chair Lina Khan staunchly defended the Federal Trade Commission’s (FTC) decision to ban employment noncompete clauses, highlighting the broad-based support the rule has received from both workers and industry sectors. In her remarks to the Ninth Circuit Judicial Conference in Sacramento, California, Khan pointed to the tech community’s recognition of the importance of information diffusion for fostering innovation. This comes on the heels of a federal court in Pennsylvania upholding the FTC’s ban on noncompetes.
Khan addressed the audience amidst ongoing scrutiny of the FTC’s assertive stance as a competition watchdog. Emphasizing the agency’s “bread-and-butter” rulemaking, Khan noted the FTC’s focus on foundational regulatory actions even as it engages in high-profile clashes with large corporations. Her comments elucidate the FTC’s commitment to maintaining competitive practices that could spur economic growth and innovation.
For more details on the court ruling and Khan’s full comments, read the article on Law.com.