FTC ends appeal over noncompete ban but seeks public input

The Federal Trade Commission officially withdrew its appeal in a federal court case over its ban on employer noncompete clauses rule that it passed last year. The agency, however, says it was public input regarding the effects of employer noncompete agreements. 

In a 3-1 vote on Sept. 5, the FTC voted to drop its appeal in Ryan, LLC v. FTC, which challenged the agency’s authority to institute a nationwide ban on most noncompete clauses. Last August, a federal judge ruled that the rule exceeded the FTC’s regulatory powers, and the agency began the appeal process last October. 

The commission vote went down party lines with the three Republican commissioners—FTC Chairman Andrew Ferguson, Commissioner Melissa Holyoak, and Commissioner Mark Meador–voting to withdraw the appeal, and the sole Democratic commissioner, Rebecca Kelly Slaughter, voting against the action.