Multistate Coalition Writes Letter in Support of Federal Trade Commission’s Proposed Rule Limiting Non-Competes in Employment

By: Scott R. Wilson | Jeff Tsai | Vanessa Offutt | Noah Schottenstein

A multistate coalition submitted comments supporting the Federal Trade Commission’s (“FTC”) proposed rule to eliminate non-compete clauses in employment contracts in most circumstances.

In January 2023, the FTC proposed a Non-Compete Clause Rule, which would bar employers from preventing workers from working for or starting a competing business after leaving a job. The proposed rule concludes that non-competes are an unfair method of competition that can depress worker wages, reduce racial and gender equality in workplaces, create legal hurdles for employees looking to grow their careers, and deter workers from challenging harmful business practices. The proposed rule would also promote gender and racial equity.

In a letter sent to the FTC Chair, 18 attorneys general expressed support for a federal rule limiting non-competes. The attorneys general represented in the letter are California, Colorado, the District of Columbia, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, and Washington.

Learn more here: 2023.04.19 FTC Comment FINAL