WASHINGTON (Jan. 5, 2023)—On Thursday the Federal Trade Commission proposed a rule that would prohibit employers from imposing noncompete clauses on workers. The ban would make it illegal for companies to enter into noncompete contracts with employees or continue to maintain such contracts if they already exist, and it would require that companies with active noncompete clauses inform workers that they are void.
The FTC estimates that banning noncompete contracts would open new job opportunities for 30 million Americans and raise wages by $300 billion a year. If enacted, the rule could send shock waves across a wide range of industries.
William E. Kovacic is a professor of Law and Policy at GW Law where he teaches anti-trust law and competition law. He is also a former FTC commissioner. He is available to comment on the FTC’s proposed new rule to prohibit employers from imposing noncompete clauses on workers.