AHA and other national associations send letter to FTC requesting delayed implementation of noncompete rule

A coalition of 230 national associations, including the AHA, submitted a letter the week of May 20 to the Federal Trade Commission requesting a stay on the Sept. 4 effective date of the Non-Compete Clause Final Rule to allow for judicial review.

"Under Section 705 of the Administrative Procedure Act, agencies 'may postpone the effective date of action taken by it, pending judicial review' when 'justice so requires,'" the letter notes. "We strongly encourage you to exercise this power on the Noncompete Rule as FTC and other agencies recently have on other rulemakings."

The organizations said a lack of FTC guidance on key pieces of the rule, such as what it means to be in a policymaking position or how the FTC will apply its functional test, has created substantial uncertainty for businesses and employees nationwide. The final rule is currently being challenged in court by several parties, including the U.S. Chamber of Commerce. A decision is expected this summer. The AHA submitted comments opposing this rule last year.