FTC Extends Comment Deadline on Noncompete Rule

Brownstein Hyatt Farber Schreck

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.”

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