A Nation Without Non-Competes

The non-competition clause may not be long for this world. On January 5, 2023, the Federal Trade Commission (FTC) announced a proposed rule to ban non-competes for most workers nationwide,¹ which underwent a 90-day public comment period that ended April 19, 2023.² The ball is now in the FTC's court to publish a final rule and announce an effective date. Much remains uncertain. It is unclear when the final rule will become effective. It is unclear whether the FTC will publish the rule in its proposed form or if the FTC will amend the final rule based on public comments. Although the final rule will almost certainly face stiff legal challenges, it is not clear whether those challenges will succeed, or if any federal court will issue a nationwide stay of the final rule while the challenges play out in court.