Washington, D.C. – The National Association of Wholesaler-Distributors (NAW) commends yesterday’s federal court decision to block the Federal Trade Commission’s (FTC) attempt to impose a nationwide ban on non-compete agreements. This ruling, which prevents the ban from taking effect in September, is a critical check against blatant regulatory overreach by the FTC.

Eric Hoplin, NAW President & CEO, released the following statement:

“This decision is a victory for common sense and the proper limits of regulatory authority. The FTC has no business telling companies what tools they can or cannot use to protect their businesses and employees. At NAW, we are committed to fighting such overreach, which is why we recently launched the NAW Legal Policy Center. The amicus brief we filed, which played a key role in this outcome, was one of our first major initiatives under the center’s banner.

This ruling not only curtails the FTC’s overstep but also reaffirms the importance of non-compete agreements in maintaining a competitive and thriving business environment. Many businesses see non-compete agreements as an essential role in protecting proprietary information, securing valuable business relationships, and allowing employers to invest confidently in their workforce. NAW will continue to advocate against regulatory overreach and for policies that protect the interests of businesses.”

To learn more about the NAW Legal Policy Center, click here.

The National Association of Wholesaler-Distributors (NAW) is one of America’s leading trade associations, representing the $8 trillion wholesale distribution industry. Our industry employs more than 6 million workers across the United States, contributing approximately one-third of the U.S. GDP. With 250,000 wholesale distribution companies operating in all 50 states and across North America, NAW is proud to support and advocate for this vital sector.