FTC to Vote on Non-Compete Ban
The FTC is set to vote on Tuesday April 23rd on a proposal to ban non-compete agreements.
The FTC recently used its Section 5 authority to ban companies from imposing onerous noncompetes on their workers.
The Federal Trade Commission (FTC) is set to vote on Tuesday, April 23, 2023, on whether to issue a proposed final rule that would ban non-compete agreements. Non-compete agreements are contracts that restrict an employee's ability to work for a competing company after leaving their current job. The FTC's proposed rule would ban non-compete agreements for all workers, regardless of their occupation or industry.
The FTC's proposed rule is based on the agency's findings that non-compete agreements harm workers and stifle competition. The FTC found that non-compete agreements can prevent workers from getting better jobs, earning higher wages, and starting their own businesses. The FTC also found that non-compete agreements can make it more difficult for new businesses to compete with established companies.
The FTC's proposed rule has been met with mixed reactions. Some businesses support the rule, arguing that it will help workers and promote competition. Other businesses oppose the rule, arguing that it will make it more difficult for them to protect their confidential information and trade secrets.
The FTC's vote on the proposed rule is expected to be close. If the rule is approved, it will be published in the Federal Register for public comment. After the public comment period, the FTC will issue a final rule.
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