Final Rules Regarding Banning Non-Compete Agreements

The Federal Trade Commission ("FTC" or "The Commission"), has issued a final Non-Compete Rule¹ ("the Final Rule") to ban non-compete agreements nationwide, aiming to promote competition, protect workers' freedom to change jobs, innovation, and foster new business formation, therefore protecting consumer welfare. This decision is outlined as the first decision that accepts non-compete clauses in employment agreements as "an unfair method of competition" and a violation of antitrust laws, thereby completely prohibiting such clauses. This landmark rule is globally significant, as non-compete clauses have not been extensively debated in the context of competition law until now. The rule is also anticipated to guide other competition authorities globally and have significant impacts on the labor market.