The Federal Trade Commission has issued a “Request for Information Regarding Employer Noncompete Agreements” to help it understand the prevalence and impact of employer noncompete agreements. This follows the agency’s September 5 decision to stop fighting a court decision that blocked a Biden-era rule banning most noncompetes.
Noncompete agreements prohibit employees from working for their employer’s competitors or starting a competing business after leaving a job. The FTC is especially seeking comments from workers who have been restricted by noncompetes and from employers that face trouble hiring workers because of their competitors’ noncompete agreements.
The FTC’s request signals a shift in approach. Rather than pursuing a nationwide ban, the agency will now evaluate restrictive noncompete clauses on a case-by-case basis. The agency said it will use the feedback it receives to inform potential future enforcement actions.
Public comments are due November 3 and can be submitted online trough Regulations.gov.
Members of the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, can read more here. CWC members can find more information on state-level noncompete laws in CWC’s resource: “Non-Compete Agreement Restrictions.”