Labor/Employment,
Antitrust & Trade Reg.
Mar. 15, 2023
FTC faces criticism of Non-Compete Clause Rule, prepares for legal challenges
A threshold question likely to be presented by any such challenge is whether the FTC can make rules to regulate business practices it deems to be “unfair methods of competition.”
Brette Tannenbaum
Partner, Paul, Weiss, Rifkind, Wharton & Garrison LLP
Phone: (212) 373-3000
Email: btannenbaum@paulweiss.com
Tannenbaum serves as deputy chair of the Antitrust Practice Group.
Megan L Gao
Associate, Paul, Weiss, Rifkind, Wharton & Garrison LLP
It is not surprising that the FTC's Notice of Proposed Rulemaking for a Non-Compete Clause Rule, a sweeping ban on nearly all U.S. employer-worker non-compete agreements, has faced criticism since its issuance on January 5. The proposed Rule would immediately invalidate any contractual term between an employer and a worker that prevents the worker from seekin...