On January 5, 2023, the FTC proposed a complete ban on non-compete clauses in employment contracts (the “Proposed Rule”), including the elimination of all existing non-competes.
The blog post by Russell Cawyer and Taylor Winn—entitled FTC Proposes Banning Noncompetition Agreements with Employees—addresses an administrative rule that would end the use of all noncompetition agreements in employment relationships outside the context of the sale of a business. The proposed rule would categorically ban employers from using non-compete clauses with workers at any level within an organization.