The Federal Trade Commission (FTC) recently announced new proposed regulations that, if adopted, will ban the use of non-compete agreements for most workers nationwide. The proposed Non-Compete Clause Rule will prohibit all employers—regardless of size—from imposing on employees and independent contractors covenants not to compete with them. It does not include a carve-out that would permit the use of non-competes with executives or other highly compensated workers.
The rule is not yet in effect. If enacted, it will not prohibit the continued use of properly drafted non-disclosure and non-solicitation clauses under federal law.
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