Is This the End of the Non-Compete Agreement?

On January 5, 2023, the Federal Trade Commission (FTC) proposed a new rule that would ban post-termination non-compete clauses and require employers to rescind existing ones. The FTC argues that non-compete clauses — which impede an individual’s ability to enter into or start a similar profession or trade — stifle worker mobility and wage growth. The ruling would essentially render existing and future agreements non-enforceable, subject to a narrow exception for owners or partners of a business.