Federal Trade Commission Proposes Rule To Ban Non-Compete Agreements for Employees

On Jan. 5, 2023, the Federal Trade Commission (FTC) proposed a new rule that would ban non-compete clauses. The proposed rule would prevent employers from entering into non-compete clauses with workers and would require employers to rescind existing non-compete clauses. The FTC’s proposed rule would apply federal restrictions that largely mirror existing legislation in states such as California, North Dakota and Oklahoma. If the rule is adopted, employers will have 180 days after the date of publication of the final rule to comply (the compliance date).