FTC Extends Comment Period for Rule Banning Non-compete Agreements for Employees and Independent Contractors
The Federal Trade Commission (FTC) announced that it will extend the comment period through April 19, 2023 for its proposed rule banning non-compete agreements for employees and independent contractors. (See FTC Announcement ). On January 5, 2023 the FTC issues a proposed rule that prohibits employers from using non-compete clauses with employees and independent contractors. If adopted, the FTC rule would require employers to rescind any such clauses contained in agreements with their employees and independent contractors, and provide notice that such clauses are no longer in effect. It would also prohibit such clauses moving forward. The proposed rule can be accessed here (See FTC Proposed Rule ). The rule is expressly limited to restrictive covenants that prohibit employee mobility - accepting jobs with competitors. But the proposed rule would also reach non-solicitation and non-disclosure provisions to the extent such provisions are functionally equivalent to a non-compete clause. I...