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FTC Issues Proposed Rule Banning Non-Competes
On January 5, 2023, the Federal Trade Commission (“FTC”) proposed a rule prohibiting employers from entering or enforcing non-compete clauses with their workers. The proposed rule would supersede any inconsistent state law. Given a March 2022 US Treasury Department report finding that one in five Americans are subject to a non-compete, this proposed rule – if it becomes final – will have a significant impact on the workplace.