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January 9, 2023

Breaking Down the FTC’s Proposed “Non-compete Clause Rule”

Late last week, the Federal Trade Commission (FTC) proposed its “Non-Compete Clause Rule,” which would make it unlawful for an employer to enter into or maintain a non-compete clause with its workers. The Steptoe team has developed a memo outlining details of the proposed Rule, and we intend to respond on behalf of our members.

*Please note that the FTC does not plan to include non-solicitation and non-recruitment restrictions within the scope of this rule. The Rule goes into effect 180 days after it is finalized and our team fully expects that it will, ultimately, be finalized.

Comments on the proposed rule will be due 60 days after its formal publication in the federal register. To submit comments that can be incorporated into The Council’s response, please contact Blaire Bartlett or Joel Kopperud. Our government affairs team will continue to update you on further developments.

Government Affairs Team