NWRA Opposes FTC Ban on Non-Compete Clauses

Arlington, VA – The National Waste & Recycling Association (NWRA) joined on a letter with the U.S. Chamber of Commerce and more than 250 other coalition members to members of Congress opposing the Federal Trade Commission’s (FTC) proposed rule to impose a nationwide ban on almost all non-compete clauses. This ban would not only impact future employment agreements, but invalidate existing non-compete clauses as well.

“The FTC’s ban on non-compete clauses is vastly overbroad and will likely harm employees and employers in the waste and recycling industry,” said NWRA President and CEO Darrell Smith. “It may even go so far as to ban many Non-Disclosure Agreements. We urge Congress to reassert its constitutional role to resolve such issues of national importance.”

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. The Supreme Court recently recognized in AMG Capital Management v. FTC the important constitutional limitations on the ability of executive agencies to issue major rules such as that proposed here without clear guidance from Congress.

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ABOUT NWRA
The National Waste & Recycling Association (NWRA) represents the private sector waste and recycling services industry. Association members conduct business in all 50 states and include companies that manage waste, recycling and medical waste, equipment manufacturers and distributors, and a variety of other service providers. For more information about NWRA, please visit www.wasterecycling.org.