Oppose the Ban on Non-Compete Agreements
March 2, 2023
In January 2023, the Federal Trade Commission (FTC) issued a notice of proposed rulemaking that would ban the use of non-compete provisions and non-compete agreements between employers and workers. If it is finalized as written, the ban would apply to both employees and independent contractors and would require employers to stop using non-compete provisions and agreements. The proposal would also require employers to withdraw existing non-compete provisions and agreements and inform workers subject to any such provisions or agreements that they are no longer in force.
While there may be some reasonable ways that non-competes could be circumscribed to prevent their over-use or abuse, this proposed rule does not even attempt to make those distinctions—and should be opposed.
Submit your comment to the FTC to request that the agency withdraw its proposal to ban non-compete provisions and agreements. The comment period is open through March 20, 2023.
The Federal Trade Commission (FTC) recently issued a Notice of Proposed Rulemaking (NPRM) that would ban the use of non-compete provisions and agreements between employers and workers.
The FTC’s proposal seeks to address alleged employer exploitation of non-compete provisions and agreements by banning wholesale their use of non-compete provisions and agreements by employers. However, my small business uses non-compete agreements and provisions to protect proprietary information. Workers who sign non-compete agreements are compensated for so doing; contracts must involve the exchange of something of value to be enforceable. Non-compete agreements and provisions exist because the labor market permits them; if workers were unwilling to exchange the promise not to compete for an offer of employment or some other thing of value, noncompete agreement and provisions would cease to exist. Their existence is a testament to the valuable role they play in establishing and maintaining relationships between employers and workers. I urge you to withdraw this proposed ban on noncompete agreements and provisions in recognition of the value they provide to both workers and employers in the labor market.