On January 5, 2023, the Federal Trade Commission (FTC) issued a Notice of Proposed Rule, that if enacted, would categorically ban nearly all non-compete agreements, with a very limited exception for non-compete agreements in the sale of a business. According to the FTC, the proposed rule would allow workers to liberally pursue employment opportunities and encourage entrepreneurship and innovation. Although the proposed rule may benefit low-wage workers, there is also a major impact on businesses and their ability to protect confidential information.

Originally published in the July-August 2023 edition of the Intellectual Property & Technology Law Journal (Vol. 35, No. 7).