The Federal Trade Commission (FTC) recently announced new proposed regulations that, if adopted, will ban the use of noncompete agreements for most workers nationwide. The proposed Non-Compete Clause Rule will prohibit all employers – regardless of size – from imposing covenants not to compete on employees and independent contractors, with no carve-out available that would permit the use of non-competes with executives or other highly compensated workers.
The rule is not yet in effect, and if enacted, it will not prohibit the continued use of properly drafted non-disclosure and non-solicitation clauses under federal law.
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