The Federal Trade Commission (FTC) has issued a notice of proposed rulemaking (NPRM) that bans employers from imposing noncompete clauses on their workers. The NPRM is based on preliminary studies that find noncompetes create an unfair method of competition, therefore, violating Section 5 of the Federal Trade Commission Act.
Noncompete agreements are widespread and can block the creation of new businesses and suppress wages. The NPRM would prohibit new and existing noncompete clauses to address these issues.
The NPRM would apply to independent . . .
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