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FTC noncompete clause ban: How employers should respond - San Francisco Business Times

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The FTC has proposed banning noncompete agreements. Here's what business owners should do next.

need to take a deep breath and review how they use noncompetes.FTC's seismic proposal to ban noncompete clauses

So what should employers be doing right now? Taking a close look at their noncompete agreements, experts say. The rule would affect about 30 million workers, with the FTC saying such agreements, which typically restrict a worker's ability to work in their industry for a certain amount of time or in a certain geographic location, are exploitative and violate the Federal Trade Competition Act. The rule would apply to independent contractors and anyone who works for any employer, paid or unpaid.

That includes how businesses can tighten up their nondisclosure agreements and nonsolicitation agreements so they can’t be deemed to function as de-facto noncompete agreements.

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