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

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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.”