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FTC Proposes Rule Deeming Non-Compete Clauses to be Unfair Methods of Competition
Truth on the Market
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On Jan. 5, 2023, the Federal Trade Commission (FTC) issued a Notice of Proposed Rulemaking (NPRM) to prohibit employers from entering non-compete clauses with workers. The proposed rule would extend to all workers, whether paid or unpaid, and would require companies to rescind existing non-compete agreements within 180 days of publication of the final rule. The FTC will soon publish the NPRM in the Federal Register, triggering a 60-day public comment period.? The rule could be finalized by the end of the year; court challenges to the final rule are likely to follow.