Attorney General Kwame Raoul, along with a coalition of 18 attorneys general, has filed an amicus brief in support of the Federal Trade Commission's (FTC) rule that bans noncompete clauses in employment contracts nationwide. These clauses restrict employees from working for or starting competing businesses after leaving their current jobs.
The FTC issued the final Noncompete Clause Rule in April 2024. This rule prohibits employers from including noncompete clauses in new employment contracts and renders most existing ones unenforceable. The FTC stated that these clauses depress wages, create legal challenges for career growth, and hinder economic innovation by trapping individuals in their jobs.
Raoul expressed his support for the FTC's efforts: “Noncompete clauses unfairly prevent millions of workers from getting higher-paying jobs that allow them to better provide for themselves and their families. They also prevent workers from leaving hostile or unsafe work environments.”
Opposition to the rule came swiftly from business groups, leading to legal challenges. In one case, Properties of the Villages Inc., v. FTC, a federal district court in Florida issued a preliminary injunction preventing the FTC from enforcing the rule against this corporation. Raoul and his coalition are supporting the FTC’s appeal to overturn this decision at the U.S. Court of Appeals for the 11th Circuit.
This amicus brief aligns with Raoul's ongoing efforts against unlawful employment practices. In 2023, he joined other attorneys general in supporting the proposed regulation through a comment letter, emphasizing benefits for low- and middle-wage workers.
Since becoming Attorney General, Raoul has initiated legislation to establish a Worker Protection Unit within his office. In 2024, he helped reach a settlement with Valvoline to stop using noncompete clauses with hourly employees. Additionally, in 2019, Raoul was part of a coalition that secured settlements requiring fast-food chains to cease no-poach agreements among franchises.
Raoul enforces the Illinois Freedom to Work Act which limits noncompete clauses for certain employees earning $75,000 or less annually.
Joining Raoul in filing this brief were attorneys general from California, Colorado, District of Columbia, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island Vermont and Washington.