Non-Compete Ban Proposed by the FTC

The Federal Trade Commission recently published a proposed rule that, if it becomes final, would ban all non-compete agreements with limited exceptions. The rule would go into effect 60 days after it becomes final, but employers would have additional time to comply. The rule defines a non-compete clause as “a contractual term between an employer and a worker that prevents the worker from seeking or accepting employment with a person, or operating a business, after the conclusion of the worker’s employment with the employer.” The rule would cover agreements with any worker, including independent contractors. 

While the rule is only a proposal at this time, employers need to be mindful that a significant change in the restrictive covenant landscape may be coming. Click here to read more, courtesy of Littler Mendelson.