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ARTICLE · 11 AUGUST 2023

Non-Competes: Movement On Both Sides Of The Atlantic

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Non-compete provisions are receiving a lukewarm reception by the authorities on both sides of the Atlantic at the moment. With plans to make changes in the UK being actively discussed...

GlobalEmployment and HR

Non-compete provisions are receiving a lukewarm reception by the authorities on both sides of the Atlantic at the moment. With plans to make changes in the UK being actively discussed, and at a federal level in the United States as well as in several states, businesses should plan for some choppy and potentially uncharted waters.

Here is the current forecast.

The Prohibition Era

On 5 January 2023, the US Federal Trade Commission (FTC) announced a proposed rule that would prohibit post-employment non-compete clauses in employment contracts across the United States. This was followed by a period of public comment, which ended on 19 April 2023. We have yet to see a final version published in the Federal Register, which would start the clock on a 60-day countdown before the rule would become effective.

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