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

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.