FTC PROPOSES RULE TO BAN NONCOMPETE CLAUSES

On January 5, 2023, the Federal Trade Commission proposed a new rule that would ban employers from imposing noncompetes on their workers. According to the FTC Press Release, noncompetes constitute a widespread and often exploitative practice that suppresses wages, hampers innovation, and blocks entrepreneurs from starting new businesses. By stopping this practice, the agency estimates that the new proposed rule could increase wages by nearly $300 billion per year and expand career opportunities for about 30 million Americans.