New Year, New Rules: FTC Proposes Sweeping Ban on Noncompete Agreements
The Author Andreya DiMarco (adimarco@hatfieldschwartzlaw.com) is counsel with Hatfield Schwartz Law Group LLC where she focuses on employment law and transactional matters. She has defended clients in state and federal courts and before administrative agencies, including the EEOC and DCR. Interviews with leading attorneys and other subject matter experts on new twists in the law and how the law is responding to new twists in the world. New Year, New Rules: FTC Proposes Sweeping Ban on Noncompetes "This is the FTC’s first attempt to ban non-compete agreements and strong opposition to the Proposed Rule as well as challenges regarding the scope of the FTC’s rule-making authority are likely to arise especially given the tremendous impact a retroactive and absolute non-compete ban would have. .... [P]otential litigation over the FTC’s authority to issue and enforce such a rule may cause further delays.... Moreover, the Proposed Rule is full of ambiguity which will likely be challenged." Abstract: On January 5, 2023, the Federal Trade Commission published a Notice of Proposed Rulemaking that would ban the use of noncompete agreements between employers and workers and would create an affirmative obligation for employers to void existing noncompete agreements. The Proposed Rule would also prohibit contractual clauses in other agreements or employment policies that have a similar [...]
