For those in radio hoping that the Federal Trade Commission’s nationwide ban on noncompete agreements would put an end to the controversial practice, those dreams are likely to be put on ice as the incoming Trump administration is expected to halt the rule.
The FTC’s rule to void most non-compete agreements, excluding a small percentage of senior executives, was halted by Judge Brown in the Ryan LLC v. Federal Trade Commission case just before its September 4 implementation. The rule’s fate currently sits in the GOP-favoring US Court of Appeals for the Fifth Circuit, however legal experts believe the Trump administration could drop the appeals.
Greg Care, partner at Brown Goldstein & Levy, suggested that appointing a new FTC chair aligned with Republican commissioners Melissa Holyoak and Andrew Ferguson could lead to repealing or modifying the rule. Care also noted that a repeal would require time-consuming federal rulemaking procedures.
The Congressional Review Act is another potential avenue to undo the ban. During his first term, Trump used the CRA to eliminate multiple Obama-era regulations. It’s also worth noting that Ryan LLC owner G. Brint Ryan has been a heavy donor to the Trump campaign and has served as a tax advisor to the President-Elect.
As for who could end up in the FTC Chair role under Trump, Makan Delrahim has been in discussions with the transition team about leading the organization, per Semafor.
Shameful and bad practice to hold laid off reduction in force (fired) personnel to non-competes. It’s a bad look for the C-Suite and senior management of these bankrupt and nearly bankrupt radio companies. Maybe the remaining “little people” in radio should consider union protection.
TRUMP will save radio!