NAB, State Associations Oppose Banning Noncompetes

RADIO ONLINE | Wednesday, March 1, 2023 | 3:57pm CT

National Association of Broadcasters

The National Association of Broadcasters (NAB) is joining with numerous state and national organizations, in sending a letter to Congress opposing the Federal Trade Commission's proposed rulemaking banning noncompete clauses nationwide. According to NAB, the proposed ban on noncompete agreements is "far-reaching" and "oversteps the FTC's jurisdiction."

The trade group maintains that broadcasting presents a unique case for reasonable noncompete clauses due to the substantial investments broadcasters make in promoting air talent.

The letter reads, in part:

"The FTC lacks the constitutional or statutory authority to issue such a rule and, in attempting to do so, the agency is improperly usurping the role of Congress.

"Moreover, this sweeping rule would invalidate millions of contracts around the country that courts, scholars, and economists have found entirely reasonable and beneficial for both businesses and employees. Accordingly, we ask you to exercise your oversight and appropriations authority to closely examine the FTC's proposed rulemaking."