WASHINGTON, D.C. (April 25, 2024) – The National Federation of Independent Business (NFIB) has expressed strong opposition to the U.S. Federal Trade Commission’s (FTC) final rule on non-compete clauses. Beth Milito, Executive Director of NFIB’s Small Business Legal Center, voiced concerns about the potential negative impact of the rule on small business owners.
Milito highlighted the challenges that small business owners may face under the new rule, stating, "Without teams of compliance officers and lawyers at their disposal, this rule’s vaguely defined and open-ended terms will be a compliance nightmare for small business owners." She further emphasized the burden on owners to revise existing contracts and communicate changes to current employees to avoid penalties, describing the rule as detrimental to small businesses.
The NFIB had previously submitted a comment letter opposing the FTC’s proposed rule, and Milito's recent statement reinforces the organization's stance against the final rule. She criticized federal agencies for not accurately representing the needs of small businesses and downplaying the rule's potential impact on Main Street firms, stating, "This rule is yet another example of federal agencies misrepresenting the needs of small businesses and underreporting the impact a regulation will have on Main Street firms."
The NFIB Small Business Legal Center, dedicated to protecting the rights of small business owners, is actively involved in various legal cases across federal and state courts, including the U.S. Supreme Court.
This development underscores the ongoing challenges faced by small businesses in navigating regulatory changes and highlights the importance of advocating for policies that support the interests of Main Street enterprises.
