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Federal Trade Commission Proposes Rule to Ban Non-Compete Agreements for Employees

Advocacy News – Jan. 12, 2023

On Jan. 5, the Federal Trade Commission (FTC) proposed a new rule that would ban non-compete clauses, preventing employers from entering into non-compete clauses and requiring employers to rescind existing non-compete clauses.  

The Michigan Chamber will be expressing its opposition to the FTC’s efforts. We believe there are serious questions about whether the FTC has statutory authority to promulgate the rule and overturn well-established state laws which have long governed their use. Non-competes, when appropriately used, are an important tool in fostering innovation and preserving competition. 

Read the full analysis of the proposal from our partners at Barnes & Thornburg. 

Advocacy News – Jan. 12, 2023

On Jan. 5, the Federal Trade Commission (FTC) proposed a new rule that would ban non-compete clauses, preventing employers from entering into non-compete clauses and requiring employers to rescind existing non-compete clauses.  

The Michigan Chamber will be expressing its opposition to the FTC’s efforts. We believe there are serious questions about whether the FTC has statutory authority to promulgate the rule and overturn well-established state laws which have long governed their use. Non-competes, when appropriately used, are an important tool in fostering innovation and preserving competition. 

Read the full analysis of the proposal from our partners at Barnes & Thornburg.