Philadelphia Partner Discusses FTC’s Proposal to End Employment-Based Non-Compete Agreements

In an interview with Bloomberg Law, Christopher Stief discusses the FTC’s proposed rule, which would ban non-compete agreements between nearly all employers and employees. The FTC proposal would ban new non-competes going forward and require that existing non-compete contracts be rescinded, whereas most state laws have allowed existing contracts signed prior to a law’s effective date to remain in place.

The proposal also invites public comments, and Christopher suggests that their request for comments on alternatives indicates their willingness to scale back the rule before making it final. "The fact that they specifically request comments on alternatives—that’s an interesting approach for an agency to take," he explains.

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