The FTC’s Proposed Rule on Non-Competes for Employees

Modern Restaurant Management 

Pooja S. Nair, Chair of ECJ’s Food, Beverage and Hospitality Department, recently published an article in Modern Restaurant Management titled, "The FTC’s Proposed Rule on Non-Competes for Employees". 

On January 8, 2023, the Federal Trade Commission (“FTC”) published a broad proposed rule to ban noncompete clauses in employment agreements. The proposed rule prohibits employers from entering into or attempting to enter into a non-compete clause with a worker; maintain with a worker a non-compete clause; or represent to a worker that the worker is subject to a non-compete clause where the employer has no good faith basis to believe that the worker is subject to an enforceable non-compete clause. Employers who have existing non-compete clauses in their employment agreements at the time the rule goes into effect must rescind the non-compete clause no later than the compliance date, and are required to provide notice to the employee of the rescission.

Click here to read Pooja’s full article.

Pooja is a business litigator and problem solver with a focus on the food and beverage sector. She advises food and beverage clients, startups and other businesses on a comprehensive range of issues, including employment, trade secrets, partnership disputes, contract negotiations and intellectual property. 

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