The Hobbs Act, named after Congressman Sam Hobbs (D-AL) and codified at 18 U.S.C. § 1951, is a U.S. federal law enacted in 1946 that provides:
(a) Whoever in any way or degree obstructs, delays, or affects commerce or the movement of any article or commodity in commerce, by robbery or extortion or attempts or conspires so to do, or commits or threatens physical violence to any person or property in furtherance of a plan or purpose to do anything in violation of this section shall be fined under this title or imprisoned not more than twenty years, or both.
Section 1951 also proscribes conspiracy to commit robbery or extortion without reference to the conspiracy statute at 18 U.S.C. § 371. Although the Hobbs Act was enacted as a statute to combat racketeering in labor-management disputes, the statute is frequently used in connection with cases involving public corruption, commercial disputes, and corruption directed at members of labor unions.
The Hobbs Act criminalizes both robbery and extortion, where:
In interpreting the Hobbs Act, the Supreme Court has held that the statute employs the fullest extent of federal authority under the Commerce Clause. Thus, the lower federal courts have recognized that an actual effect on commerce is sufficient to satisfy the federal jurisdictional element even if it is slight or de minimis.
The government will often use the depletion of assets theory to prove the jurisdictional element. Under this theory, interstate commerce is affected when an enterprise, which either is actively engaged in interstate commerce or customarily purchases items in interstate commerce, has its assets depleted through extortion, thereby curtailing the victim's potential as a purchaser of such goods. While the courts have interpreted the jurisdictional element liberally, it is not a formality; courts have drawn a distinction under the depletion of assets theory between individuals and businesses. While depletion of a business' assets is usually sufficient to show an effect on interstate commerce, depletion of an individual's assets generally is not. Representatively, the Second Circuit reasoned in United States v. Perrotta (2002) that making no distinction between individuals and businesses would bring under the ambit of the Hobbs Act every conceivable robbery or extortion.