SHRM Statement on FTC Non-Compete Rule Being Set Aside

ALEXANDRIA, Va. – Emily M. Dickens, SHRM Chief of Staff and Head of Government Affairs, issued the following statement in response to the ruling by the U.S. District Court for the Northern District of Texas on the Federal Trade Commission’s (FTC) non-compete rule.

"SHRM has been clear on this issue from the beginning, advocating for balanced business practices that protect both workers and employers. The court’s decision affirms our position—like SHRM, the Judge recognized that the FTC’s sweeping ban failed to explore less restrictive alternatives and ignored the positive impact non-compete agreements can have when applied appropriately. 

This ruling delivers much-needed clarity for businesses and workers alike, as the court found the rule to be unlawful and rightly blocked it from taking effect on September 4.

SHRM views this decision as a victory for smart advocacy, sound policy, and, ultimately, the U.S. workforce. We remain committed to supporting any further efforts to uphold the Judge’s ruling and ensure that non-compete agreements, when used responsibly, remain a viable tool in our economy."

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