FTC Proposes Rule Banning Noncompete Agreements

By , and on January 19, 2023
Posted In Employment

On January 5, 2023, the Federal Trade Commission (FTC) issued a proposed rule that would prohibit employers from using noncompete agreements with their employees or independent contractors. This proposal arises from a preliminary finding by the FTC that noncompetes constitute an unfair method of competition in violation of Section 5 of the Federal Trade Commission Act (FTC Act). It comes on the heels of the FTC’s November policy statement asserting its intention to rigorously enforce and expand the scope of Section 5 of the FTC Act’s ban on unfair methods of competition.

If adopted, this rule would make it illegal for an employer to enter into a noncompete agreement with a worker, maintain a noncompete with a worker or represent to a worker that the worker is subject to a noncompete. Employers would also be required to rescind existing noncompetes and inform workers that they are no longer enforceable.

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Brian Mead focuses his practice on various labor and employment issues. He defends employers, before state and federal courts and administrative agencies, in individual and class action litigation under the Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964, the Family and Medical Leave Act, the Fair Credit Reporting Act, the Fair Labor Standards Act and other employment laws, including discrimination, wrongful termination, retaliation, and breach of contract claims. Additionally, Brian has experience in prosecuting and defending employee mobility and trade secret litigation cases on an emergency injunctive basis. Brian is skilled in researching multi-jurisdictional employment issues and preparing memoranda explaining the nuances of these issues and providing a recommended course of action. Read Brian Mead's full bio.


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