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Energy Workforce Responds to FTC’s Non-Compete Clause Rule

Energy Workforce and Technology Council has responded to the Federal Trade Commission’s proposed Non-Compete Clause Rule, outlining the potential impact on the energy services and technology sector. Read the comments.

Energy Workforce is primarily concerned with the effect that a non-compete ban could have on technology research and development, one of the hallmarks of this sector. Technologies developed by the industry are highly competitive, and innovation is used by companies to gain market share over others. Should the FTC move forward with the rule, Energy Workforce recommends defining senior executives based on duties, rather than compensation, to protect the knowledge of intellectual property and other sensitive materials. Energy Workforce does not believe a salary cap would be an effective tool due to the structure of many of its companies. Finally, Energy Workforce believes that the rule could increase the likelihood of litigation between companies and therefore have unintended consequences for the broader economy.

Efforts like this FTC rule could negatively impact the sector, its workforce and the ability for increased domestic oil and gas production. Currently, the energy services and technology industry is exceeding expectations and producing close to pre-pandemic levels, all while developing new technology and deploying innovative production processes that are lowering emissions.

For more information about this rule and potential impacts on the energy services and technology sector, contact President Tim Tarpley.

Maria Suarez-Simmons, Senior Director Energy Policy, writes about industry-specific policies for the Energy Workforce & Technology Council. Click here to subscribe to the Energy Workforce newsletter, which highlights sector-specific issues, best practices, activities and more.


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