Labor/Employment,
Contracts,
Antitrust & Trade Reg.
Jan. 12, 2023
FTC proposed rule on employee noncompetes
Employers with existing non-compete clauses at the time the rule goes into effect must rescind the non-compete clause no later than the compliance date, and are required to provide notice to the employee of the rescission.
Pooja S. Nair
Partner
Ervin Cohen & Jessup LLP
Email: pnair@ecjlaw.com
Pooja is a litigation attorney who has represented clients in the health care, life sciences, and banking industries in state and federal court, and has handled delicate compliance issues and internal investigations. She is a member of the firm's food and beverage department.
On Jan. 5 the Federal Trade Commission (FTC) announced a proposed rule to ban noncompete clauses in employment agreements. The agency’s aggressive rulemaking stance would bring the rest of the country in line with longstanding California law.
Approximately 30 million people, or 1 in 5 American employees, are bound by non-compete clauses – a number that has trended up over time. Section 16600 of the California Business and Professions Code ...
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