February 20, 2023

REMINDER: Learn About And Weigh In On FTC Non-Compete Rule

As a reminder, as Connecting the Dots reported last month, the Federal Trade Commission (FTC) has proposed a rule to ban non-compete agreements for all employees and independent contractors with no exceptions except in cases between a buyer and seller of a business. Additionally, Congress also could soon consider legislation that would impose a partial non-complete ban that is designed to protect hourly workers.

Given the FTC’s aggressive action, there is likely to be increased interest in federal legislation in the current Congress.

It is time for individual companies to make their voices heard. The FTC lacks the statutory authority to regulate non-compete agreements and its proposed regulation will have a significant impact on U.S. workers and the nation’s economy.

MSCI already has joined the U.S. Chamber of Commerce and other business organizations to send a letter, available here, to the FTC requesting an extension to the FTC’s comment period for the proposed regulation.

We now need interested companies to weigh in. Click here to learn how to submit a comment letter to the FTC. The deadline is March 20, 2023. As reminder, the FTC’s proposed rule would make it illegal for an employer to:

  • Enter into or attempt to enter into a non-compete with a worker;
  • Maintain a non-compete with a worker; or
  • Represent to a worker, under certain circumstances, that the worker is subject to a non-compete agreement.

The U.S. Chamber of Commerce has more information on this rule here and here.

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