Federal Trade Commission Issues Proposed Rule That Would Bar Most Non-Compete Agreements with Workers

Sullivan & Cromwell LLP - January 6, 2023

On January 5, 2023, the FTC issued a new proposed rule that would bar most non-compete agreements with workers. According to the FTC, the rule would invalidate more than 30 million non-compete agreements. The proposed rule is a significant test of the FTC’s regulatory authority, marking its first rulemaking related to unfair methods of competition in decades. As Commissioner Wilson noted in her dissent, the rule is almost certain to head to litigation if it is adopted.

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