The Federal Trade Commission proposed a rule on Thursday that would block employers from using noncompete agreements to restrict workers from pursuing employment with competitors.
In its push to throw out noncompete agreements, the FTC cites Section 5 of the Federal Trade Commission Act, which prohibits “unfair methods of competition in or affecting commerce.” The agency will now open up the issue for public comment on the practice, which limits employment prospects for tens of millions of Americans.
6. @FTC is seeking public comment on the proposed rule. Hearing from entrepreneurs, workers, and employers will help ensure that the final rule reflects market realities. The proposal identifies potential alternative rules & key questions we are exploring:https://t.co/iStVfLDDGv
— Lina Khan (@linakhanFTC) January 5, 2023
“The freedom to change jobs is core to economic liberty and to a competitive, thriving economy,” FTC Chair Lina M. Khan said. “N …
