The US FTC seeks to ban non-competes and brings related enforcement actions

Contract terms limiting employees’ ability to work for competitors are squarely in the crosshairs of the Federal Trade Commission. In back-to-back days during the first week of January, the FTC used enforcement actions and a newly proposed regulation to declare its position that virtually all non-compete agreements in employment contracts constitute unfair methods of competition and are therefore illegal under Section 5 of the FTC Act. This is part of the FTC’s broader initiative to use all of its tools and authorities to promote what it perceives to be fair competition in labor markets.. On January 4th, the FTC announced that it had voted 3-1 to issue consent decrees against three companies, declaring that their use of non-compete clauses in employment agreements constituted an unfair

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Authors

  • Covington & Burling (Washington DC)
  • Covington & Burling (Washington DC)
  • Covington & Burling (Washington DC)
  • Covington & Burling (Washington DC)

Quotation

John Graubert, Terrell McSweeny, Ryan Quillian, Lauren S. Willard, The US FTC seeks to ban non-competes and brings related enforcement actions, 4 January 2023, e-Competitions January 2023 - II, Art. N° 110497

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