As we reported in February, the Federal Trade Commission (FTC) has proposed a new rule that would basically ban all employers from imposing any type of non-compete agreement, no matter what form it may be written or provided. As proposed, this new rule would not only ban all non-competes, it would apply to all employers, no matter the size of the company, and it would also be retroactive, meaning that it would make any existing non-competes invalid.
On February 23, 2023, ICCFA sent out a survey to our members to determine what position, if any, would best serve the membership on this issue. We took that feedback and crafted comments opposing the Non-Compete Rule as it relates to the sale of a business, as the general exception provided by the proposed Non-Compete Rule is too broad. Our thanks to everyone who participated in the survey.
If you would like to be heard on this issue, the deadline to file comments is Wednesday, April 19, 2023. Please refer to the information below on how to file comments with the FTC. On the subject line of your letter, please include “Non-Compete Clause Rulemaking, Matter No. P201200.”