FTC Releases Proposed Rule to Make Non-Compete Clauses in Employment Contracts Unlawful


On January 5, the U.S. Federal Trade Commission (FTC) released the text of a soon-to-be published proposed rule banning non-compete clauses in employment contracts that is expected to impact 1 in 5 U.S. workers—or 30 million Americans. The proposal makes it an unfair method of competition under the Federal Trade Commission Act for an employer to enter into or attempt to enter into a non-compete clause with a worker; to maintain a non-compete clause with a worker; or, to represent to a worker that he or she is subject to a non-compete clause.


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