The Federal Trade Commission (FTC) is considering a rulemaking
to address the use of non-compete provisions in employment
contracts. On January 9, 2020, the FTC held a day-long workshop to start a public conversation on
whether it should use its rulemaking power to take on this issue.
The two Democratic Commissioners have expressed strong support for
an FTC rulemaking, while the Republican Commissioners appear less
open to a rulemaking effort.
If the FTC were to regulate non-competes, this would be a
significant development in an area traditionally governed by state
law. It remains unclear whether the FTC will move forward with a
rulemaking and what a potential FTC rule would look like. However,
the FTC workshop highlights growing concern about non-competes and
their impacts on workers and labor markets.
