SIFMA today issued the following statement from president and CEO Kenneth E. Bentsen, Jr. regarding the final Federal Trade Commission (FTC) non-compete rule:
“We are carefully reviewing the final rule released today and appreciate that the FTC carved out the sale of businesses and the existing agreements for senior executives. We however, remain concerned that the near-categorical prohibition on non-compete clauses would hurt competition and the economy by terminating long-established practices of using non-compete clauses to protect a business’s sensitive information. The proposal also greatly underestimated its compliance costs, while failing to establish a clear record on its benefits or necessity.”
