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ARTICLE · 27 JANUARY 2023

The FTC's Sweeping Proposal To Ban Non-Competes

Davis+Gilbert LLP
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On January 5, 2023, the Federal Trade Commission ("FTC") released a Notice of Proposed Rulemaking with a proposed rule that would almost universally prohibit the use of non-competes...

United StatesEmployment and HR
David Fisher
David Fisher
Daniel R. Friel
Daniel R. Friel
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The Bottom Line

  • In the three weeks since the proposed rule was released, the FTC has received over 5,600 comments, and many more are expected from interested individuals, companies, industry groups and trade associations.
  • Until the final rule, if any, is implemented, companies should continue to review and consider the laws in the states in which they operate, many of which have significantly changed in the past few years.
  • Interested parties are strongly encouraged to have their voices heard by submitting comments via this link.

On January 5, 2023, the Federal Trade Commission ("FTC") released a Notice of Proposed Rulemaking with a proposed rule that would almost universally prohibit the use of non-competes by employers. The proposed rule would prohibit employers from (1) entering into or attempting to enter into non-competes with their workers; (2) maintaining pre-existing non-competes; and (3) representing to a worker that the worker is subject to a

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