
Blog written by Blethen Berens, a Greater Mankato Growth Bronze Investor
On January 5, 2023, the Federal Trade Commission (FTC) announced a proposed rule that would invalidate almost all non-compete agreements or clauses used by employers as well as any other restrictive agreements that “function” as non-compete agreements. The proposed rule would prohibit any contractual term between an “employer” and “worker” that prevents the worker from seeking or accepting employment with a person or operating a business, after the conclusion of the worker’s employment with the employer. This proposed rule would supersede all state law on the subject. The FTC does not have authority over banks, federal credit unions, air carriers, common carriers, meatpackers, and poultry dealers. Those industries are exempt from the proposed rule, but almost all other hired relationships will be covered.
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