FOLLOW US

Tue

July 14, 2026

America June 5, 2024 5 mins read

Rep. Matt Gaetz Backs FTC in Fight Over Noncompete Clause Ban

America ı By Rochdi Rais

0 Comments

Matt Gaetz FTC Noncompete Clause Ban

Rep. Matt Gaetz threw his support behind the Federal Trade Commission on Tuesday in a court battle over the agency's new rule banning employee noncompete clauses, arguing that Congress has repeatedly affirmed the commission's authority to make competition rules.

Gaetz, a Florida Republican who has praised the Biden administration's antitrust enforcement efforts, filed an amicus brief in Texas federal court supporting the FTC as it defends against a challenge of the rule from tax preparation company Ryan LLC and the U.S. Chamber of Commerce.

The brief argued that the rule barring the use of employment clauses preventing workers from moving to a competitor fits "squarely within" the statutory rulemaking authority granted by Congress to the commission over a century ago when it passed the FTC Act.

In a statement Tuesday, Gaetz said he believes noncompetes are a bipartisan issue and said his brief highlights that Congress thought hard about the role the FTC should play in helping "create a level playing field in the American economy."

"The FTC noncompete rule is a reasonable exercise of the FTC's delegated authorities and I believe it is helpful for American workers, such as those who were let go from their jobs due to workplace vaccine mandates and then doubly injured when they were prohibited from job hunting," Gaetz said.

While many Republicans still object to what they call a heavy governmental hand in regulatory enforcement, some prominent Republican lawmakers like Gaetz and Sen. J.D. Vance, R-Ohio, have praised the FTC for standing up to consolidation in big business and other antitrust issues.

In Tuesday's brief, Gaetz argued that the noncompete rule is the result of an "extensive economic and legal inquiry" into the harms caused by the clauses that included considering some 26,000 public comments. The brief also said the challenge of the rule is more than just an academic inquiry into the commission's authority because more than 30 million American workers are subject to noncompete clauses that reduce their wages by $30 billion each year.

"Just as our forebearers toward the end of the 19th century began to recognize that uncontrolled economic individualism had led to private restraints that tolerated neither individualism nor freedom, amicus similarly recognizes that noncompete agreements are often coercive private restraints masquerading as freedom of contract," the brief said.

The FTC voted 3-2 along party lines to implement the new rule on April 23, deeming the use of noncompete clauses in employment contracts an unfair method of competition and thus unenforceable. Set to take effect in September, the rule bars noncompetes moving forward and requires employers to tell current and former employees that existing agreements are no longer enforceable.

It includes a carveout for existing noncompetes covering senior executives, but the use of the clauses for those employees will be banned going forward.

The suit from Ryan and the Chamber argues the FTC lacks express congressional approval to regulate noncompetes and cannot rely on its general authority against unfair methods of competition. The suit also argues that the retroactive effect raises constitutional concerns and that a categorical ban reflects an "arbitrary and capricious" exercise of the agency's powers since noncompetes need to be analyzed individually to see if they're unfair.

A pending motion in the case would pause the rule's slated September start date and block enforcement while the suit is pending. Labor groups, local lawmakers and others have thrown their support behind the commission, while nearly a dozen national and international trade associations were among those to support the challenge in amicus briefs last month.

The brief from Gaetz contended that Congress passed the FTC Act in 1914 due to concerns that the U.S. Supreme Court had eroded the nation's foundational antitrust law, the Sherman Act. The FTC Act created the commission and gave it the authority "to make rules and regulations for the purpose of carrying out the provisions" of the act.

The brief also argues that Congress had several opportunities to limit the commission's substantive rulemaking authority when passing laws that amended the FTC Act, including the Magnuson-Moss Act in 1975.

"Magnuson-Moss expanded the Commission's authority to issue rules prohibiting 'unfair or deceptive acts or practices,' subject to heightened procedural requirements, and left intact the Commission's authority to issue rules regarding 'unfair methods of competition,'" the brief said.

The commission's rulemaking power is not an open question, the brief said, and Congress did not intend for the issue to be litigated each time the agency tries to adopt or enforce a rule.

"In fact, it is precisely concern over judicial activism that gave rise to these, and other, delegations of authority to federal agencies," the brief said.

Representatives for the FTC and Ryan declined to comment Tuesday. Representatives for the Chamber did not respond to a request for comment.

Gaetz is represented by Andrew Kloster.

Ryan LLC is represented by Allyson N. Ho, Elizabeth A. Kiernan, Eugene Scalia, Amir C. Tayrani, Andrew G.I. Kilberg, Aaron Hauptman and Joshua R. Zuckerman of Gibson Dunn & Crutcher LLP and Charles W. Fillmore and H. Dustin Fillmore III of The Fillmore Law Firm LLP.

The U.S. Chamber of Commerce, Business Roundtable, Texas Association of Business and Longview Chamber of Commerce are represented by Jordan L. Von Bokern and Tyler S. Badgley of the U.S. Chamber Litigation Center, Liz Dougherty of Business Roundtable, Jeffrey B. Wall and Judson O. Littleton of Sullivan & Cromwell LLP and Robert L. Sayles and Boyce Holleman of Bradley Arant Boult Cummings LLP.

The FTC is represented by Madeline M. McMahon, Taisa Goodnature, Rachael Westmoreland and Arjun Mody of the U.S. Department of Justice's Civil Division.

The case is Ryan LLC et al. v. Federal Trade Commission, case number 3:24-cv-00986, in the U.S. District Court for the Northern District of Texax.

Previous Article

Pennsylvania Judge Cuts $2.25 Billion Roundup Verdict to $404 Million

Read More
2757 Posts

Rochdi Rais

Rochdi Rais is the Fractional Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
Breaking News July 12, 2026
Graham Senate Seat Triggers Political Scramble
By – Michallie Harrison
America July 12, 2026
two killed in Toronto After Deadly street festival shooting
By – Rihem Akkouche
America July 12, 2026
Elephant Fire burns 4500 acres in Sierra County
By – Rihem Akkouche
Arizona January 11, 2025
Kelly Warner Law Firm Blames USA…

In what appears as a desperate attempt to defend multiple…

By – USA Herald
Arizona January 4, 2025
Aaron Kelly Law Firm Resorts To…

Attorney Aaron Kelly and his law partner Daniel Warner are…

By – Jeff Watterson
Arizona December 12, 2024
Arizona Bar Opens Investigation on Attorney…

USA Herald recently reported on a developing story involving Attorneys…

By – Paul O'Neal
America July 11, 2026
Oregon Withdraws Court Motion in Paramount-Warner…

Oregon blinked — but it did not back down. The…

By – Rihem Akkouche
America July 11, 2026
1 dead After fire at Davis…

A Saturday morning that began like any other in South…

By – Rihem Akkouche
America July 11, 2026
Apple Sues OpenAI Over Trade Secrets…

The partnership that placed ChatGPT inside hundreds of millions of…

By – Rihem Akkouche
America July 11, 2026
NYT Air Force One Subpoena Targets…

They came on a Friday evening, to the homes of…

By – Rihem Akkouche
America July 11, 2026
Gordie Howe Bridge to Open on…

Named for a hockey legend who won four Stanley Cups…

By – Rihem Akkouche
America July 11, 2026
Teen Football Player’s Death on Uninhabited…

Christine and Elmore Wonsley are not sleeping. They cannot. A…

By – Rihem Akkouche
America July 11, 2026
Teen Football Player’s Death on Uninhabited…

Christine and Elmore Wonsley are not sleeping. They cannot. A…

By – Rihem Akkouche
America July 11, 2026
Hundreds Of People at Summer Camp…

The water came faster than the roads could handle and…

By – Rihem Akkouche
America July 11, 2026
UFC Event Allegedly Targeted in White…

WASHINGTON, D.C. — A historic UFC Event held on the…

By – Jackie Allen
America July 10, 2026
Russia Sanctions Bill Gains BiPartisan as…

WASHINGTON, D.C. — Russia Sanctions legislation moved closer to becoming…

By – Jackie Allen
America July 10, 2026
Manhattanhenge 2026: Final Summer Sunset Alignment…

NEW YORK — Manhattanhenge is making its final appearance of…

By – Jackie Allen
America July 10, 2026
Jared Isaacman Says NASA Has Unexplained…

WASHINGTON, D.C. — Jared Isaacman, the administrator of NASA, says…

By – Jackie Allen
America July 10, 2026
Jared Isaacman Says NASA Has Unexplained…

WASHINGTON, D.C. — Jared Isaacman, the administrator of NASA, says…

By – Jackie Allen
America July 9, 2026
Erika Kirk Seeks Public Release of…

Erika Kirk, the widow of Turning Point USA co-founder Charlie…

By – Jackie Allen
America July 9, 2026
Bonnie Tyler Remembered as Legendary Welsh…

Bonnie Tyler, the Welsh singer whose unmistakable raspy voice powered…

By – Jackie Allen
America July 9, 2026
Assault on Iran Escalates as U.S.…

The Assault on Iran intensified after the United States launched…

By – Jackie Allen
America July 9, 2026
Broadcom Deal: Apple Commits More Than…

Apple is dramatically expanding its investment in American semiconductor manufacturing…

By – Jackie Allen
America July 8, 2026
Arranged Marriage Ends in Tragedy: Amazon…

An Arranged Marriage that began in the summer of 2025…

By – Jackie Allen
America July 8, 2026
Forensic Scientist Henry Lee’s Final Interview…

A legendary Forensic Scientist whose testimony influenced some of America’s…

By – Jackie Allen
America July 6, 2026
Accused of Rape:  Graham Platner Denies…

Accused of Rape, Maine Democratic U.S. Senate candidate Graham Platner…

By – Jackie Allen
America July 6, 2026
AI Regulation Debate Intensifies After Peter…

 The global debate over AI Regulation took a dramatic turn…

By – Jackie Allen
America July 5, 2026
California Chaos: Fourth of July Celebrations…

California Chaos unfolded across parts of Southern California during the…

By – Jackie Allen
America July 5, 2026
Paul Pelosi Faces Charge After Alleged…

Paul Pelosi, the husband of former House Speaker Nancy Pelosi,…

By – Jackie Allen
America July 4, 2026
Beach Closures Expand Across Long Island…

Beach Closures were spread across parts of New York just…

By – Jackie Allen
America July 8, 2026
Arranged Marriage Ends in Tragedy: Amazon…

An Arranged Marriage that began in the summer of 2025…

By – Jackie Allen
America July 4, 2026
Beach Closures Expand Across Long Island…

Beach Closures were spread across parts of New York just…

By – Jackie Allen
America July 3, 2026
Mars Rover Images Lead to Debates…

A new Mars Rover image captured by NASA’s Curiosity mission…

By – Jackie Allen
America July 3, 2026
Taylor Swift and Travis Kelce’s Star-Studded…

Taylor Swift and Travis Kelce’s highly anticipated wedding is finally…

By – Rihem Akkouche
America July 3, 2026
Federal Judge Sends Bad Bunny Reggaeton…

INSIDE THIS REPORT A federal judge denied summary judgment to…

By – Samuel Lopez
America July 3, 2026
Mike Rowe Sues Discovery for $2…

Inside This Report Mike Rowe is suing Discovery, claiming the…

By – Samuel Lopez
Health July 2, 2026
The Hidden Science Behind Why Your…

For millions of people, the first conscious act of the…

By – Tyler Brooks
Health July 2, 2026
The High Cost of the Infinite…

A significant legal chapter is closing for one of the…

By – Tyler Brooks
Health July 2, 2026
Kentucky Medicaid Alert How The Upcoming…

A significant change is arriving for thousands of Kentucky residents…

By – Tyler Brooks
Health June 29, 2026
Everything You Need to Know About…

As the calendar turns to July 1, residents of Georgia…

By – Tyler Brooks
Breaking News June 26, 2026
Trump Seeks $1.4 Billion as Congo…

The Trump Ebola funding request would provide more than $1.4…

By – Michallie Harrison
Health June 25, 2026
Temperatures in France were higher than…

The images coming out of Europe this week are nothing…

By – Tyler Brooks
America July 2, 2026
Taylor Swift Wedding Reports Claim Private…

Taylor Swift Wedding speculation intensified after reports claimed that pop…

By – Jackie Allen
High Profile Court Cases July 2, 2026
Justice Served as Former NFL Scout…

The Nashville courtroom fell silent this Wednesday as a jury…

By – Tyler Brooks
America June 29, 2026
Stonewall Riots: An Uprising That Changed…

The Stonewall Riots marked one of the most significant turning…

By – Jackie Allen
Sports June 26, 2026
USMNT Lost to Turkey at 90+8.…

Kaan Ayhan’s goal came in the 90th minute, plus eight.…

By – Nicolas Carreno
Entertainment June 25, 2026
Tears, Goals, and the Siuuu: IShowSpeed’s…

The 2026 FIFA World Cup has been a rollercoaster of…

By – Tyler Brooks
America June 22, 2026
World Cup History Made as Lionel…

World Cup history was made Monday afternoon in Arlington, Texas,…

By – Jackie Allen

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter