The Federal Trade Commission (FTC) has issued a Notice of Proposed Rulemaking to broadly ban the use of non-compete covenants throughout the country. The proposed rule, which would supersede all contrary state laws, would extend to “de facto” non-compete clauses, i.e., contractual provisions that have the effect of prohibiting workers from seeking or accepting employment or operating a business after the conclusion of the worker’s current employment.

For a more extensive discussion of the proposed rule, see our Article, Federal Trade Commission Proposes Broad Ban on Use of Non-Compete Covenants.