Staff Contact: Andrew Wheeler
The Federal Trade Commission proposed a rule that would prohibit employers from imposing noncompete clauses on workers. According to the FTC, noncompete clauses significantly reduce workers’ wages, stifle new businesses and new ideas, exploit workers, and hinder economic liberty. The rule would ban employers from entering into noncompete clauses with workers and independent contractors while requiring employers to rescind existing noncompete clauses. Comments about the proposed rule are due Friday, March 10. MHA published an issue brief with additional details.