Earlier this month, the Federal Trade Commission (FTC) abandoned its attempt to enforce a nationwide ban on noncompete agreements. The federal rule at issue was grounded in Section 5 of the Federal Trade Commission Act which empowers the FTC to prevent businesses from using unfair methods of competition. Proponents believed noncompete clauses to be exploitative…
Tag Archives: NonCompete
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Proposed FTC Rule Seeks to Promote Economic Liberty: Why Your Noncompete Clause May No Longer be Enforceable
By: Cristina N. Hyde, JD Last Thursday, the Federal Trade Commission proposed a Non-Compete Clause Rule (the “proposed rule”) that would broadly ban the use of noncompete clauses in employment agreements. The typical noncompete agreement prevents individuals from working for a competing employer, or starting a competing business, after their employment ends. They also often…