Federal Trade Commission Proposes Ban on All Noncompetes

By: Jessica Jackler

On January 5, 2023, the Federal Trade Commission (FTC) released a Notice of Proposed Rulemaking that would ban employers from imposing noncompetes on their workers. The proposed rule would prohibit employers from entering into noncompete clauses with their workers including independent contractors. It would require employers to rescind existing noncompete clauses with workers and actively inform them that the clauses are no longer in effect.

The proposed rule will undergo a comment period and will likely face great opposition before it may become final and applicable to employers.

Practice Pointer: Until the proposed rule becomes final and goes into effect, employers may continue to enforce and enter into new noncompete clauses with their workers, subject to applicable state laws.

Chicago, Illinois 312-377-1501 | Crown Point, Indiana 219-488-2590
Indianapolis, Indiana 219-488-2590 | Milwaukee, Wisconsin 414-758-3367

Chicago, Illinois

312-377-1501


Crown Point, Indiana

219-488-2590


Indianapolis, Indiana

219-488-2590


Milwaukee, Wisconsin

414-758-3367