On January 5, 2023, the Federal Trade Commission (FTC) issued a proposed rule which, if enacted, would ban most non-compete clauses in employment contracts. The rule would also require employers to rescind existing non-compete clauses with its workers and provide those workers with written notice that the non-competes have been rescinded.
This rule, if enacted
Businesses constantly search for ways to protect their competitive advantages, customer relationships, confidential business information and trade secrets. Non-competition agreements (which often include confidentiality provisions) are usually part of those protection efforts. Despite the belief of many employers (and employees) that these non-competition agreements are unenforceable and not worth the paper they’re written on, they