Time to Comment on FTC’s Non-Compete Ban is Running Out

Much has been written about the FTC’s January 5th proposed rule regarding non-compete clauses.  The overview of the rule states that “about one in five Americans- approximately 30 million people- are bound by a non-compete clause and are thus restricted from pursuing employment opportunities”. The rule defines a non-compete clause as “a contractual term between an employer and a worker that prevents the worker from seeking or accepting employment with a person or operating a business, after the conclusion of the worker’s employment with the employer (See section 910.1). Most importantly, the rule requires employers to rescind existing non-compete clauses and provide notice to the worker that the non-compete clause is no longer in effect.

What no one seems to be writing about is the fact that the FTC has solicited comments for its proposed rules. Those comments can be submitted online by March 10, 2023. One might assume that organizations such as The Chamber of Commerce will submit comments in opposition to the proposed rule.

Cosgrove Law Group frequently represents employees in their employment endeavors regarding non-compete clauses in employment contracts. As such, it urges employees to submit their comments and be heard as well.

To do so, take a look at https://www.ftc.gov/legal-library/browse/federal-register-notices/non-compete-clause-rulemaking. Food for thought.