On Jan. 5, 2023, the Federal Trade Commission issued a proposed rule that would ban all noncompete agreements with limited exceptions. ABC will be commenting in opposition to the proposed rule, which is overly restrictive on well-established and reasonable business practices of the construction industry. Comments on the proposed rule are due by March 20 through regulations.gov.

According to the FTC, the proposed rule would make it illegal for an employer to:

  • Enter into or attempt to enter into a noncompete with a worker;
  • Maintain a noncompete with a worker; or
  • Represent to a worker, under certain circumstances, that the worker is subject to a noncompete.

Further, the proposed rule would apply to independent contractors and anyone who works for an employer, whether paid or unpaid. It would also require employers to rescind existing noncompetes and actively inform workers that they are no longer in effect.

A webinar will be held for ABC members on Feb. 2 at 2 p.m. ET. Registration and additional details will be included in next week’s Newsline.

To learn more about the new concerning rule, read ABC general counsel Littler’s analysis.