On April 19, LeadingAge submitted comments to the U.S. Federal Trade Commission (FTC) concerning a proposed rule that would prohibit employers from entering into non-competition agreements with workers.  In its explanation of the proposed rule, the Commission noted that where an employer is exempt from coverage under the Federal Trade Commission Act, the employer would not be subject to the rule, such as an entity that is not “organized to carry on business for its own profit or that of its members.” 

This essentially relates to what authority the Commission has under the FTC Act with respect to certain matters, and we asked in our letter for the FTC to include this confirmation of exemption for nonprofits in any final rule.  We also shared brief comments recommending that the Commission tailor its proposal if it proceeds to issue a final rule, rather than taking a one-size fits all, categorical approach.