FTC proposes rule to ban noncompetes in effort to promote worker freedom

Employment Law

By Chris Gair

Chris Gair is a founding partner of Gair Eberhard Nelson Dedinas Ltd., a boutique litigation firm focusing on complex commercial litigation and white-collar defense. He is a former assistant U.S. attorney for the Northern District of Illinois and clerked for the late Justice Seymour Simon of the Illinois Supreme Court.

Posted January 10, 2023 11:50 AM

Updated January 10, 2023 2:06 PM

The Federal Trade Commission last week proposed a blockbuster rule that, if adopted, would ban all noncompetition agreements in employment contracts, working one of the most fundamental shifts in employer-employee relationships in decades.The rule would supersede all inconsistent state laws. The proposal would continue to allow, however, noncompete agreements entered into as part of the sale of a business.The FTC adopted the rule by a 3-1 vote, saying that banning noncompetes in employment agreements could raise workers …

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