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Labor/Employment,
Antitrust & Trade Reg.

Mar. 15, 2023

FTC faces criticism of Non-Compete Clause Rule, prepares for legal challenges

A threshold question likely to be presented by any such challenge is whether the FTC can make rules to regulate business practices it deems to be “unfair methods of competition.”

Brette Tannenbaum

Partner, Paul, Weiss, Rifkind, Wharton & Garrison LLP

Phone: (212) 373-3000

Email: btannenbaum@paulweiss.com

Tannenbaum serves as deputy chair of the Antitrust Practice Group.

Megan L Gao

Associate, Paul, Weiss, Rifkind, Wharton & Garrison LLP

It is not surprising that the FTC's Notice of Proposed Rulemaking for a Non-Compete Clause Rule, a sweeping ban on nearly all U.S. employer-worker non-compete agreements, has faced criticism since its issuance on January 5. The proposed Rule would immediately invalidate any contractual term between an employer and a worker that prevents the worker from seekin...

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