WASHINGTON–While much of the attention in Washington is on President Biden’s decision to stay in the presidential race and on several hearings on the Hill this week, America’s Credit Unions said it continues to monitor what is taking place relative to non-compete clauses.
As CUToday.info reported, the U.S. District Court for the Northern District of Texas in the case Ryan LLC v. Federal Trade Commission issued an order enjoining from enforcing its non-compete rule, which prohibits virtually all employee non-compete agreements with limited exceptions.
That rule was to go into effect Sept. 4, but the court has now delayed that rule and other groups are also backing challenges.
Affecting CUs as Employers
“The FTC rule may get struck down as being overly broad and the most recent Supreme Court rulings certainly have an impact on that trajectory,” said Carrie Hunt, chief advocacy officer with America’s Credit Unions. “It may not necessarily directly impact credit unions, but it does impact them as employers. I think the job market for credit unions is something that came under a lot of scrutiny during COVID. It can be more challenging for (CUs) to attract qualified employees and I'll be interested to see how that shakes out and in the next couple of years.”