The Federal Trade Commission (FTC), in a tight 3–2 vote, recently voted to adopt a rule banning non-compete agreements nationwide. Non-compete agreements have never been regulated at the federal level and the FTC’s adoption of its new rule breaks with centuries of state and federal law on the topic. Several lawsuits have already been filed challenging the FTC’s rule claiming, among other things, that the United States Congress never empowered the FTC with general rulemaking authority regarding matters under its jurisdiction.
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