Update as of March 7, 2023 – The FTC has extended the public comment period to April 19. To submit a comment, visit Regulations.gov.
The Federal Trade Commission is considering a rule to ban noncompete clauses on the grounds that they hurt workers and harm competition. They estimate the new rule could increase workers’ earnings by nearly $300 billion annually.
Research has shown that employers use noncompete agreements to restrict worker mobility and suppress wages. Frequently, the noncompete agreements are not legal and cover employees with no specialized knowledge and would otherwise not have been subject to such an agreement.
Employers have been found to use noncompetes to stifle employees’ ability to get a job elsewhere, forcing them to stay employed. Recent court cases have ordered damages for employees harmed by such agreements.
The FTC has invited the public to submit comments on the proposed rule. Comments will be accepted through March 10th, 2023. Learn more information about the FTC’s proposed rule or submit a comment.
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