Is it the Beginning of the End for Workplace Non-Compete Agreements?
January 24, 2023
On January 5, 2023, the Federal Trade Commission (“FTC”) issued a Notice of Proposed Rule Making and additional information describing a new proposed rule that would prohibit employers across the country from entering into non-compete agreements with their workforce. The FTC’s press release and related information on the proposed rule can be found here.
The FTC’s proposed rule is in response to a prior Executive Order from President Biden, which, among other things, encouraged the FTC to use its rule-making authority to “to curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility.” At the time, few people likely anticipated the broad sweeping prohibition that would follow under the FTC’s current proposed rule.