NAM Urges Rejection of PRO Act
The NAM is opposing the reintroduction of legislation that would institute “card check” and other labor policies harmful to manufacturers.
What’s going on: A coalition of nearly 100 organizations including the NAM urged Congress last week to reject the Protecting the Right to Organize Act, introduced in the House in February by Rep. Robert C. Scott (D-VA).
- “This bill would limit workers’ right to secret ballot elections, trample free speech and debate, jeopardize industrial stability, threaten vital supply chains, limit opportunities for small businesses and entrepreneurs, cost millions of American jobs and greatly hinder the economy,” they told Congress.
What’s in it: This legislation would significantly worsen—not improve—conditions for employees, the coalition argued. It would:
- Limit workers’ free speech and remove the right to vote via secret ballots.
- Hand confidential worker information over to unions without employee consent.
- Allow unions to choose bargaining units that maximize their chances of winning elections.
- Eliminate right-to-work laws.
- Allow intermittent strikes and remove bans on unions boycotting companies that do business with those engaged in an active labor dispute.
The cost: “The economic impact of the PRO Act would be catastrophic,” the coalition continued, citing one study which “found that the bill’s independent worker reclassification provision alone could cost as much as $57 billion nationwide, while the joint-employer changes would cost franchises up to $33.3 billion a year, lead to over 350,000 job losses, and increase lawsuits by 93%.”
In the spotlight: Many provisions of the PRO Act were raised during a hearing Wednesday of the Senate Health, Education, Labor and Pensions Committee chaired by Sen. Bernie Sanders (I-VT)—demonstrating that this issue and this legislation will remain a top priority for him and others in the Senate.
A One-Woman Workforce Solution: Meet Toyotetsu’s Leslie Cantu
Leslie Cantu has an unusual but effective method of stress reduction: cuddling with bovines.
“You can’t stay stressed or frustrated when you have a cow licking you on the cheek,” laughed Toyotetsu’s assistant vice president of administration.
Ranch life: Living on a ranch south of San Antonio, Texas, with 13 dogs, 15 cats, five miniature horses, multiple sheep and three newborn lambs might sound to others like a lot of work, but to Cantu, it is indeed a method of decompression.
- “I have five children and two grandbabies, and spending time with them out on the ranch, just being able to take care of the animals and enjoy time with the kids, it’s rewarding, it’s relaxing,” said Cantu.
- Life on the ranch sounds busy, but it’s nothing compared to work life for Cantu, a 2023 Honoree of the Manufacturing Institute’s Women MAKE Awards, which recognize top female talent in the manufacturing industry. She’s involved in a dizzying array of workforce programs both at the company and outside of it.
Finding FAME: Cantu, the first woman to be named an assistant vice president at the global automotive parts manufacturer, spends a lot of time making a difference for the company’s workforce.
- In 2016, her first year on the job, she helped Toyotetsu open the Federation for Advanced Manufacturing Education’s first Texas chapter, TX FAME – Alamo. Today, she serves as the chapter president.
- “Through FAME, we’ve really been able to build that multiskilled-technician pipeline to make sure we can meet those critical skills needed for our business,” Cantu said of the workforce development initiative for high school graduates, which was founded by Toyota and is now operated by the MI (the NAM’s 501(c)3 workforce development and education affiliate).
Seeking diversity: Cantu also helped Toyotetsu form a partnership with the Texas Workforce Commission and the local workforce development board to create a 12-week manufacturing apprenticeship program—the first of its kind in Texas—for individuals with disabilities. The inaugural class graduated in January.
- “It’s programs like this and FAME that help us find unique ways to fill those skills gaps and focus on diversifying the workforce,” she said. “There’s a lot to be said for diversifying the workforce, [including] improved morale and retention.”
A second chance: In 2018, in another bid to deepen Toyotetsu’s talent pool, Cantu spearheaded the launch of a second chance hiring initiative in partnership with the local county’s economic development board. The project now consists of seven manufacturers, all of whom regularly hire formerly incarcerated individuals—with great results.
- “Toyotetsu alone has hired about 140 ex-offenders and had tremendous success with that,” said Cantu.
- “Analyzing our data and metrics, we’ve been able to see that our second chance population has better performance and better retention than those who come to us through traditional recruiting. [Second chance] has effectively become a go-to, best practices strategy for us.”
Playing to strengths: Cantu credits some of her success in strengthening Toyotetsu’s workforce to her natural ability to think creatively.
- “As we continue to work through the national skills-force gap, hiring and COVID-19, it’s become important to think outside the box … to see how we could build our talent pipeline,” Cantu said.
- “That’s one of my strengths, tapping into those resources. Part of that is knowing what resources are out there, and thankfully, I’ve got a great boss and corporate office that support community involvement,” she added.
And if that wasn’t enough … Cantu is the chair of Workforce Solutions Alamo, and she sits on the board of the Texas Workforce Commission’s Adult Education & Literacy Advisory Committee and on the advisory board of a local high school.
The last word: Cantu has some encouraging words for women looking to follow in her (very energetic) footsteps:
- “Oftentimes there’s an image of manufacturing [as being] for men, or [that] it’s dark, it’s dirty, it’s dangerous. And that’s not what manufacturing is. There’s a lot of opportunity to use the skills that women bring to the table: multitasking, transferable skills,” she says.
- “It’s incredibly important that we mentor women thinking about careers in manufacturing, tell our stories and share the journey so that we can encourage others following the same path.”
Timmons: We Have to Get Serious About Competing with China; The President’s Budget Does the Opposite
Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement on President Biden’s fiscal 2024 budget plan:
“There is no escaping the fact that the tax increases in President Biden’s new budget proposal would reverse the recent significant growth we’ve achieved in American manufacturing jobs and investment.
“After the 2017 tax reform made rates more competitive, manufacturers kept their promises to raise wages and invest in their communities. In fact, 2018 was the best year for manufacturing job creation in the previous 21 years. And in the past two years, as we rebuilt from the pandemic, we’ve created more jobs in the sector than at any point since the Reagan administration. So it comes as a surprise that President Biden, who has vocally championed manufacturing growth in pushing successfully for infrastructure investment and the CHIPS and Science Act, wants to pursue policies that would undo our progress.
“We have to get serious about competing with China; the president’s budget does the opposite. This proposal further undermines manufacturing in America by failing to reverse tax policies that make it more difficult for our industry to perform research, while China currently employs a 200% super deduction on R&D for manufacturing. It’s also now more expensive to buy critical machinery and finance new investments. If these lapsed deductions aren’t reinstated, it will mean lost jobs, less innovation and fewer opportunities for our communities.
“As manufacturers work to lead our economy forward, we also remain committed to lowering health care costs through market-based solutions that deliver choice and flexibility. Unfortunately, this administration’s insistence on imposing drug pricing requirements is an abdication of free market principles that poses serious risks to the development of new treatments and therapies—the very type of innovation that saves lives in America and around the world.
“Manufacturers are committed to growing investment, jobs and wages here in America. We need our government leaders to share that commitment.”
Background: Read more about how these critical tax priorities impact manufacturers across the country here.
-NAM-
The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.81 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.
More Women Join the Manufacturing Workforce
Fresh off International Women’s Day, which was March 8, there’s some encouraging news on the labor front: more women are coming back to the workforce, both in manufacturing and throughout the economy.
In manufacturing: Female employment in the industry reached its height this year, with a total of 3.77 million workers, according to NAM calculations based on BLS numbers.
- Women now account for 29% of the manufacturing workforce.
- A year ago this week, the Manufacturing Institute, the NAM’s 501(c)3 workforce development and education partner, launched its 35×30 campaign, an initiative that aims to boost women’s share of the manufacturing workforce to 35% by 2030.
The overall economy: “Women have gained more jobs than men for four straight months, including in January’s hiring surge, pushing them to hold more than 49.8% of all nonfarm jobs,” according to The Wall Street Journal (subscription).
- “Female workers last edged higher than men on U.S. payrolls in late 2019, before the pandemic sent nearly 12 million women out of jobs, compared with 10 million men.”
Why it’s happening: The child-care disruptions and health concerns that made many women leave the workforce during the pandemic are diminishing, while employers offer historically high pay and increasing numbers of remote positions.
Why it’s important: More women in the workforce could help ease both worker shortages and inflation.
- With January unemployment reaching a 53-year low, “[a] greater supply of labor could work to counter rising wages and align with the Federal Reserve’s goal of cooling inflation,” according to the Journal.
- More job seekers could also help U.S. manufacturers, whose job openings edged up to 803,0000 in January.
The last word: “In just a year, the 35×30 campaign has made great strides in increasing the number of women in manufacturing—and the latest data show as much,” said MI President Carolyn Lee. “We’re close to our goal. Together, we can get the rest of the way there and make it to 35% by 2030.”
NAM Opposes FTC Ban on Noncompete Agreements
The NAM is opposing the Federal Trade Commission’s proposed ban on all noncompete agreements, pushing back on a move that would damage the manufacturing industry. We talked to NAM Vice President of Infrastructure, Innovation and Human Resources Policy Robyn Boerstling about the NAM’s reasoning on this crucial issue.
What noncompetes do: As Boerstling put it, manufacturers use noncompete agreements only for select workers handling their most sensitive information.
- That information might include the details of the company’s most sophisticated processes and strategies, which cannot be allowed to fall into competitors’ hands.
- Not only do these employees handle the keys to a company’s success, Boerstling added, but they are the recipients of significant investments in time, compensation and training.
The potential damage: Banning noncompetes would force companies to revamp their human capital operations completely, argued Boerstling.
- It would mean that trade secrets or other essential information might walk out the door and be exploited not only by competitors, but also by foreign adversaries.
- Manufacturers would be forced to put in place burdensome controls or silo parts of their operations from each other, which would result in less training for employees and less efficiency across various divisions.
- In a highly competitive industry—not to mention during significant economic uncertainty—that is a high price to pay, Boerstling pointed out.
Why not something else? Noncompete agreements are a critical tool for protecting manufacturers’ intellectual property, and alternatives like nondisclosure agreements are not sufficient, said Boerstling.
- In fact, in IP cases, courts look specifically at whether a company has employed noncompete agreements in deciding whether that company has taken reasonable steps to protect their property and processes.
FTC in the wrong: The FTC is wrong to put forth this blanket ban on a number of counts, said Boerstling.
- First, the rulemaking concerns an issue of “vast economic and political significance” that is beyond the scope of the FTC Act.
- Second, the regulation of these agreements has been handled successfully at the state level, a situation that works well for manufacturers.
- Third, the FTC is being too simplistic by striking at all noncompetes at once. Complex technical industries require noncompetes for good reason, as their sophisticated IP is the core of their business.
- Last, this ban is set to be retroactive, which is sure to cause confusion for both employers and employees.
What the NAM wants: The NAM objects to the FTC’s proposal in its current form and asks that it be withdrawn until the FTC can propose a more tailored approach that allows for sensible exemptions, said Boerstling.
“Competing to Win” Comes to Louisiana
Few things are more quintessentially Louisianan than seafood and Tabasco sauce, and on the third stop of the NAM’s Competing to Win Tour on Thursday, NAM President and CEO Jay Timmons got to spend some time with both.
The first stop: Laitram LLC, the Harahan, Louisiana–based manufacturing leader in seafood and nuts processing equipment, played host to Timmons, Louisiana Rep. Garret Graves (recently tapped by House Speaker Kevin McCarthy as Elected Leadership Committee chair) and Louisiana Association of Business and Industry President and CEO Stephen Waguespack.
- Laitram President and CEO Jay Lapeyre (who also serves as chairman of the Cato Institute Board of Directors) and his team led the group through a facility tour of Intralox, a subsidiary of Laitram specializing in conveyer belts and equipment that improve productivity, food safety and reliability in high-speed package sorting.
- Timmons, Rep. Graves and Waguespack spoke with line employees across the facility, and Timmons was impressed by the company’s successes in employee retention: “Nearly everyone I met had been there a decade or more … One team member recently marked 46 years with the company,” he noted afterward.
Talking policy: Timmons moderated a roundtable discussion on manufacturing policy opportunities and challenges with Laitram’s senior staff, Rep. Graves and Waguespack after the tour.
- Lapeyre and his team expressed concerns about pass-through tax rates, which impact Laitram given that it is an S-Corp. They also raised alarms about the recent phaseout of pro-growth tax deductions for research and development and bonus depreciation.
- Trade emerged as a top priority for Laitram and its global enterprise, and Lapeyre also shared his perspective on the need for more regulatory certainty, particularly in the light of a potential new rule from the Federal Trade Commission limiting the use of noncompete agreements.
- Meanwhile, Rep. Graves emphasized the continued importance of protecting tax reform and pointed to ongoing efforts in Congress to advance permitting reform.
The second stop: The NAM team then headed to Avery Island, about two hours outside of New Orleans, where they visited McIlhenny Company, the maker of the iconic red-and-green-bottled Tabasco pepper sauce.
- Timmons was given a full tour of the 155-year-old company’s facilities, which included stops at the manufacturer’s barrel-aging warehouse, blending facility, bottling and packing plant and its onsite restaurant.
- McIlhenny Chief Operating Officer Michael Terrell—a fourth-generation employee of the company—and Agricultural Manager Christian Brown—a sixth-generation employee—guided the tour around the facility, which showed off some of the manufacturer’s recent bottling-plant innovations. These included label readers, case packers and a packet line, as well as several sustainability initiatives.
The last word: As Timmons said at the outset of the competitiveness tour, “The story of manufacturing in America is one of resilience and defying the odds. All manufacturers ask is that in Washington, when it comes to policy, don’t stack those odds against us.”
Manufacturers: Find Our Open Jobs and Pathways to Careers at CreatorsWanted.org
Amid a workforce crisis, the National Association of Manufacturers and the Manufacturing Institute partner with FactoryFix to launch a new resource
Washington, D.C. – With the number of manufacturing job openings in the United States averaging 830,000 per month over the past year, the National Association of Manufacturers and the Manufacturing Institute have partnered with FactoryFix to launch and power Creators Connect, a new digital career resources platform designed to help students, parents, career influencers and job seekers easily explore and pursue the wide range of pathways available in modern manufacturing.
“Addressing the workforce crisis is among the top concerns for manufacturers across the country,” said NAM President and CEO and Manufacturing Institute Board Chair Jay Timmons. “While we cannot fully solve this challenge without immigration reform, manufacturers are determined to lift up more people in the United States with the promise and reward of modern manufacturing careers—and Creators Wanted’s new digital career resources platform is another way that manufacturers are leading with solutions.”
Creators Connect is the first and only unified platform to search and explore career pathways, job openings and job training programs across the entire manufacturing industry while making it easier for manufacturing professionals to attract and identify talent to fill the skills gap.
“We’ve made tremendous strides in inspiring a new generation of manufacturers at the Manufacturing Institute and across the industry, but what’s been missing is a single resource for manufacturing jobs and pathways opportunities,” said MI President Carolyn Lee. “Today, we bring an unmatched tool—in terms of volume and quality of jobs—to help us close the skills gap and change more misperceptions about modern manufacturing.”
Creators Connect is live on CreatorsWanted.org, home of the NAM and MI’s Creators Wanted campaign, which is the largest industry campaign to build the workforce of today and tomorrow. Since 2021, Creators Wanted has built an email network of more than 1 million students, early career entrants and potential career influencers. FactoryFix is already the leading manufacturing recruitment platform in the U.S., hosting more than 400,000 job openings and having its own talent network of more than 650,000 manufacturing workers. The partnership is the first of its kind for the industry’s largest and oldest manufacturing trade association.
“It’s an incredibly exciting opportunity for FactoryFix to be the engine behind Creators Connect and a part of the Creators Wanted campaign,” said FactoryFix CEO and Founder Patrick O’Rahilly. “As a one-stop recruiting solution for manufacturers to find qualified and engaged candidates, we’re looking forward to increasing our impact in addressing the labor shortage and helping more Americans create their future in modern manufacturing.”
By powering Creators Connect, FactoryFix representatives will join the NAM and the MI’s Creators Wanted workforce campaign as it continues its roadshow in 2023 and expands its digital campaign across the United States. By 2025, Creators Wanted aims to recruit 600,000 new manufacturing team members; increase the number of students enrolling in technical and vocational schools or reskilling programs by 25%; and increase the positive perception of the industry among parents and career influencers to 50% from 27%.
To explore Creators Connect, visit CreatorsWanted.org.
-NAM-
The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.9 million men and women, contributes $2.81 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit nam.org.
-Manufacturing Institute-
The MI grows and supports the manufacturing industry’s skilled workers for the advancement of modern manufacturing. The MI’s diverse initiatives support all workers in America, including women, veterans and students, through skills training programs, community building and the advancement of their career in manufacturing. As the workforce development and education partner of the NAM, the MI is a trusted adviser to manufacturers, equipping them with resources necessary to solve the industry’s toughest challenges. For more information on the MI, please visit https://www.themanufacturinginstitute.org.
-FactoryFix-
FactoryFix is the leading recruitment automation solution for manufacturing companies, combining the power of a talent network with specialized recruitment technology. Our platform helps HR manufacturing teams save time and budget by automating tedious tasks, streamlining recruitment efforts and providing a consistent flow of engaged candidates.
Founded in 2017 in Chicago, Illinois, FactoryFix has nearly 650,000 manufacturing professionals in its talent network and is the exclusive recruiting partner of the National Association of Manufacturers, Manufacturing Institute and Creators Wanted. Hundreds of the top manufacturing companies in the country trust FactoryFix to help meet their hiring goals. For more information, please visit https://www.factoryfix.com.
Pella Corp. Takes a “Holistic” Approach to Work
Pella Corp. does more than make windows and doors; it has helped create a welcoming, pleasant community in its namesake Iowa town.
To help attract and retain workers, the privately held, family-owned, 98-year-old company and its shareholders are investing in a number of crucial amenities and services, including child care, housing and dining/entertainment options.
We spoke to Pella Corp. Executive Vice President and Chief Human Resources Officer John Bollman recently, and he told us how it happened.
A great first impression: Prospective hires in need of relocation always get a full tour of the town—and they are always impressed, according to Bollman.
- “People consistently come back [from the tours] and say, ‘Wow, I’m surprised—in a positive way—in the community. It’s a small community, but it’s beautiful and vibrant.’”
- “Pella is a community that takes pride in its heritage and history and the shareholder family has always played a key role in enhancing the community’s appeal,” he added.
How it happened: Several years ago, Pella Corp. President and CEO Tim Yaggi, in a presentation to Pella Corp. shareholders, indicated that different investments were needed to improve local housing, child care and amenities. These upgrades would help the company attract and retain the talent it needed to achieve its long-term growth goals, Yaggi said.
- The shareholder family committed nearly $30 million to these initiatives, which included investment in the construction of a high-end condominium/townhouse complex, as well as a 160-acre development geared toward median-income households.
- They also purchased, remodeled and expanded a local building, turning it into a state-of-the-art daycare facility. In 2021, under the management of national daycare operator New Horizon Academy, the Pella New Horizon Academy opened, serving children aged six weeks through 5 years.
- In addition, they partnered with fellow Pella-based firm Vermeer Corp. to bring Smash Park, a craft-food and entertainment venue, to the town.
- And last, the company helped to establish both a local Chick-fil-A restaurant and Liberty Street Kitchen, one of the community’s fine-dining establishments.
A holistic approach: Pella Corp. knows that when it fills a job at the company, it’s also bringing in new town residents, and that’s a responsibility it takes seriously.
- “When you’re recruiting talent, the company is assessing fit for the role,” Bollman said. “But when it comes to location, our job is to facilitate the ability of the candidate—and if they have a family, the family, too—to determine whether Pella as a community is a good fit.”
- The approach is paying off. One recent key hire had to relocate for the position, and before the family visited the town of Pella, they were certain they wanted to live in larger Des Moines, about an hour away. “But because they were able to find good child care and housing, they decided to live in Pella,” Bollman said.
Meeting parents’ needs: The high cost and low availability of child care is an enormous burden on families, so it’s no surprise that the affordably priced, high-quality Pella New Horizon Academy is highly sought after.
- The center, which is currently at capacity at 140 children and has a waitlist of about 50, is open to all. Nearly a third are Pella Corp. employees’ kids, according to Bollman.
- “We wanted to invest in child care for our team members and our broader community,” he said.
- The cost is 35-40% less than the average price of daycare in Des Moines, according to Bollman.
Onward and upward: Pella Corp. has big plans for its child-care initiative, says Bollman. If it can expand its staff, “we could go to 194 enrolled kids, and with some additions to the building, that could go to 225.”
- He has no doubt that the center will easily fill those spaces. “Everyone I’ve talked to that has a child at the center is just over the moon.”
Timmons: America’s Success and Leadership Depend on a Strong, Competitive Manufacturing Industry
Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement in response to President Biden’s 2023 State of the Union address:
“President Biden rightly celebrated the significant growth and job creation that manufacturers have achieved in these past two years. Indeed, more manufacturing jobs have been created in the first two years of the Biden administration than at any point since the Reagan administration. Like his recent predecessors, he recognizes manufacturing’s vital role in our economy and our country. America’s success and leadership depend on a strong, competitive manufacturing industry.
“The President should be commended for the historic, bipartisan accomplishments of the past two years—including the infrastructure law and the CHIPS and Science Act. These measures are already making life better and spurring new manufacturing jobs. We agree with President Biden that there is now an urgent need to build on that progress by tackling immigration reform in a smart, bipartisan way. There are millions of people ready to work in the U.S., and manufacturers have hundreds of thousands of unfilled jobs. Not only is the broken immigration system creating a border crisis, but it is also standing in the way of a stronger economy for every American.
“However, the President misses the mark in not recognizing that the historic tax reforms of 2017 and the previous administration’s efforts to promote regulatory certainty helped lay the foundation for the recent success in creating jobs, increasing investment and raising wages. Instead of the Biden administration’s misguided suggestions for restrictions on pharmaceutical innovation and for destructive tax increases, Congress should immediately reinstate critical tax deductions for the costs of research, machinery purchases and key business investments. Restoring these tools is essential to keep up the pace of manufacturing job creation and to out-innovate and outcompete China. And to truly unleash manufacturing investment, fully realize the potential of the infrastructure law and achieve energy security in America, we need a smarter, balanced approach to regulations and significant permitting reform so that projects don’t languish for years in a bureaucratic mess just waiting for government approvals. After all, manufacturers are already making great strides in reducing emissions. Now is not the time to add top-down air regulations that will cost us jobs and snarl supply chains.
“The State of the Union address is one of the sacred traditions of our democracy. And as we approach the one-year mark of Russia’s war on Ukraine, we are reminded just how precious those traditions and our institutions are. Democracy is the foundation of the values that keep our industry strong and have made America exceptional—free enterprise, competitiveness, individual liberty and equal opportunity. And that is why manufacturers stand firm in our belief that democracy must be respected, protected and defended at home and abroad.”
Background: The NAM’s “Competing to Win” policy agenda for manufacturing competitiveness can be found here. Its in-depth proposal for immigration reform, “A Way Forward,” is available here. In the NAM’s most recent Manufacturers’ Outlook Survey, two-thirds of manufacturers said that immigration reform should be a priority for the 118th Congress.
-NAM-
The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.81 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.
NAM to FTC: Noncompete Rule Would Harm Manufacturers
The NAM is urging the Federal Trade Commission to extend the comment period on its recently proposed rule to ban noncompete agreements in the workplace, citing the rule’s broad economic impact and significant legal implications.
The background: On Jan. 5, the FTC proposed a rule that would prohibit employers from imposing noncompete agreements on workers, calling such clauses “an unfair method of competition” and saying they prevent the forming of new businesses and result in lower wages for all workers.
What the NAM is doing: The NAM opposes the proposed change, and the association joined a coalition of other business groups this week requesting that the public comment period, which runs through March 20, be extended by 60 days. The reason: the proposal would have far-reaching legal consequences for manufacturers, including risks to intellectual property.
- “A sufficient comment period is needed to ensure the regulated community can fully assess [the rule’s] effects,” the coalition told FTC Secretary April Tabor. “Moreover, there are significant legal questions that must be addressed by commenters.”
- “Among the issues raised by the FTC action is whether the Commission has the legal authority to issue such a rulemaking, the rule’s potential preemption of the numerous state laws and regulations on this issue, and how such preemption will alter the regulated community’s legal obligations.”
Working for manufacturers: The NAM is exploring all possible avenues, including congressional oversight and litigation, to mitigate the impacts of the proposed rule. Litigation is contingent on financial support from NAM members, as all of the NAM’s activities in the courts are funded outside of member dues.