The Federal Trade Commission recently proposed a new rule that could change U.S. employment.
- The rule proposes a ban on non-competes, which prevents employees from accepting work from competitors of current employers.
- This rule would apply to all workers, including independent contractors, externs, interns, volunteers, and apprentices.
According to the proposal from the FTC, "the Commission seeks to ensure competition policy is aligned with the current economic evidence about the consequences of non-compete clauses. In the Commission’s view, the existing legal frameworks governing non-compete clauses— formed decades ago, without the benefit of this evidence—allow serious anticompetitive harm to labor, product, and service markets to go unchecked."