What Employers Need to Know Now: FTC’s Proposed Noncompete Ban - McDermott

What Employers Need to Know Now About the FTC’s Proposed Noncompete Ban


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. The proposed rule permits the use of confidentiality agreements, but it states that other agreements (e.g., nonsolicitation clauses) will be permitted only if they do not operate as a de facto noncompete. The proposed rule further states that noncompetes will only be permitted in connection with the sale of a business for those who own at least 25% of the business.

Please join our multidisciplinary team of Employment and Antitrust lawyers for a webinar that will highlight what employers should do now. The program will cover:

  • A more in-depth look at the impact the rule will have on your current agreements, and when the rule might take effect
  • The legal challenges that are likely to be raised to challenge the FTC’s authority to pass this rule, and when those challenges would work their way through the court system
  • The opportunity to comment on the proposed rule by March 10, 2023, whether your company should comment and if so, on what issues

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