ftc noncompete agreements

 The US Federal Trade Commission (FTC) is proposing a ban on non-compete clauses in employment contracts that would prevent workers from switching jobs. The proposal would prohibit employers from entering into or enforcing such clauses with employees or independent contractors and would require companies to nullify any existing ones within six months. Non-compete clauses are agreements that restrict an employee's ability to work for a competitor after leaving a company. The ban would exempt companies that want to require an owner or partner selling a business from immediately re-entering the field. Approximately one in five Americans is bound by a non-compete agreement, according to a Treasury Department report from March 2022. The figure is higher in certain industries, such as technology and healthcare, where studies have found that as many as 45% of primary care physicians and between 35% and 45% of tech workers are bound by non-compete clauses. The FTC will accept public comments on the proposal for 60 days and will consider those submissions before issuing a final version of the rule

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