The FTC comments period ends today regarding the proposed rule regarding banning non-compete agreements. What happens now is that the FTC staff will review the comments. After the review period, the FTC will publish a final rule. There is no timetable on when that will occur, but certainly not earlier than the end of 2023.
This is the proposed FTC Rule.
The Rule has been supported vigorously by some companies which believe it would be good for business. Yelp has most recently filed a public comment supporting the Rule.
The US Chamber of Commerce is on record that it will block any enactment of such a Rule.
If there is a chance for compromise in the drafting of a final Rule, it may be limiting which employees are going to be protected. It may extend only to employment situations where employee has no employment contract and has no leverage to negotiate a non-compete agreement that was included in a “take it or leave it” Hire Letter. It may carve out enforcement of a final Rule in employment situations where executives have contracts that are negotiated and include a non-compete period during which the former employee is paid for all or part of the term. he non-compete period.
In this website under “Practice Areas” — here is link— I’ve included a discussion of non-compete clauses, which are prevalent in many if not most business employment situations in those States where it is legal.
