The Employment Law Counselor

On January 5, 2023, the Federal Trade Commission released a Notice of Proposed Rulemaking to prohibit employers from entering into non-compete clauses with workers and require employers to rescind existing non-compete clauses. Proponents argue that non-compete clauses hold American workers “hostage” by keeping wages low and suppressing new businesses and innovation.

Dissenters, on the other hand, contend that, “the proposed rule is a radical departure from hundreds of years of legal precedent that employs a fact specific inquiry into whether a non-compete clause is ... Continue Reading