FTC Proposes Rule To Ban Non-Compete Clauses

On Thursday, January 5, 2023, the Federal Trade Commission ("FTC"), which enforces antitrust law, proposed a rule that would prohibit employers from imposing non-compete clauses on workers. This proposed rule, which can be found here, could impact more than 30 million workers nationally and carries important implications for Florida's business community.

A non-compete clause is a contractual clause between an employer and a worker that prevents the worker from joining a competing employer, or starting a competing business, typically with geographic and time-based parameters.

The FTC is an independent agency charged with enforcing civil antitrust law and promoting consumer protection. Its notice of proposed rulemaking is based on the agency's initial finding that non-compete clauses violate Section 5 of the FTC Act, which prohibits unfair methods of competition.