The Labor & Employment Blog provides employers with breaking news, insights, and legal analysis on the wide range of labor and employment issues facing employers and businesses. While the Blog provides a general summary of regulation updates, it is not intended to be, and should not be relied upon as, legal advice. The labor & employment attorneys at Chamberlain Hrdlicka stand ready to counsel employers on the issues they face.
Larry Carbo, Shareholder and Co-Chair
Kellen Scott, Shareholder
Minakshi Swaminathan, Associate
Elizabeth Feeney, Associate
AmyJo "AJ" Foreman, Associate
Hannah Strawser, Associate
Chamberlain Hrdlicka Blawgs
Last week, the Federal Trade Commission approved its issuance of a rule that outlaws nearly all non-compete clauses because, its majority believes, they are unfair methods of competition. The Non-Compete Clause Rule is a product of a 2021 Executive Order that instructed the FTC to exercise its rulemaking authority to curtail unfair use of non-compete clauses and a January 2023 proposed rule that drew more than 26,000 public comments. The FTC estimates its Rule will cause employers to increase its pay to workers by more than $400 Billion over ten years, foster the creation of more than ...
In January of 2023, the Federal Trade Commission issued a notice of proposed rulemaking that planned to ban non-compete clauses for workers, as the majority of the Commissioners contended that non-compete clauses are unfair methods of competition. The FTC received more than 26,000 public comments to the proposed rule.
Today, in a 3-2 vote by the FTC’s Commissioners, the FTC authorized publication of the Non-Compete Clause Rule. The FTC’s fact sheet pertaining to the rule and the rule itself can be found here.
The final rule bans new non-competes with all workers after the ...