Advocacy News – Feb. 15, 2023
The Federal Trade Commission (FTC) is proposing a rule to ban non-compete agreements for all employees and independent contractors, with no exceptions except in cases between a buyer and seller of a business. Among other things, the rule would also require employers to rescind existing non-competes and actively inform workers that they are no longer in effect. The proposed rule can be viewed here.
On the heels of the FTC’s announcement, a bipartisan group of U.S. Senators has reintroduced a bill, dubbed the “Workforce Mobility Act of 2023,” that would largely ban the use of employer non-compete agreements nationwide as a matter of federal law.
While the MI Chamber opposes the efforts to ban non-competes, and the US Chamber has made clear that it will challenge the FTC legal authority to issue any competition rule, neither organization has an extensive understanding of all the ways our members use non-competes.
To better understand how non-competes are being used by Michigan businesses, and the potential policy ramifications and impacts of this proposed ban, we are conducting a member survey. All individual responses will remain fully confidential – only aggregate data will be used and shared.
Please contact Wendy Block with questions at wblock@michamber.com.