Alert
Recommended Alerts
U.S. Federal Trade Commission Publishes Notice of Rulemaking Prohibiting Non-Compete Clauses
On January 5, 2023, the U.S. Federal Trade Commission (“FTC”) published a sweeping proposed rule that, if finally issued, would prohibit post-employment non-compete clauses (or other clauses with comparable effect) in agreements between employers and their employees or other workers. Specifically, the FTC’s notice of proposed rulemaking, published in a 3-1 vote, provides that the proposed “Non-Compete Clause Rule” would ban virtually all clauses in employment-related agreements that have the effect of restricting workers from seeking or accepting employment following their service with their employer—including voiding such clauses in existing agreements.