The big regulatory news out of the FTC in April was the issuance of a new Final Rule governing noncompete agreements. If it becomes effective, the new rule, which would ban most noncompetes nationwide, would radically change the landscape of employer-employee relations in the United States. But, as discussed in our Client Alert on the subject, the Final Rule has already been challenged in federal court by the U.S. Chamber of Commerce and other business groups, and it may be enjoined before it can be enforced.
April also saw the release of the FTC’s Final Rule updating and substantially revising its Health Breach Notification Rule (HBNR). The HBNR amendments underscore and in many ways cement the significant expansion of the Commission’s health-and-wellness-related enforcement in an era of rapid innovation in health-and-wellness-related technology.
One possible reason for the spate of Final Rules we’ve been seeing and we’re likely going to continue to see: The Congressional Review Act (CRA). The CRA allows Congress to repeal a regulatory rule within 60 legislative days of its passage with a simple majority, barring a Presidential veto. In 2016, the Republican Congress used the CRA to repeal a raft of late-Obama era rulemaking. The FTC is likely looking at that 60-legislative day clock and at recent history as they move to finalize these and other Rules.
To view the previous FTC Regulation Tracker updates, please see below:
FTC Regulation Tracker—March 2024
FTC Regulation Tracker—January 2024
FTC Regulation Tracker—December 2023
FTC Regulation Tracker—November 2023
FTC Regulation Tracker—October 2023
FTC Regulation Tracker—August 2023
FTC Regulation Tracker—July 2023
FTC Regulation Tracker—June 2023
FTC Regulation Tracker—May 2023
FTC Regulation Tracker—April 2023