The FTC proposed a new rule last Thursday that would ban employers from imposing non-compete clauses on their workers. The proposed rule extends recent enforcement actions against three companies that resulted in a ban on those companies’ use of non-compete restrictions and the imposition of various remedial actions, and purports to supersede inconsistent state law.

The proposed rule would deem non-competes an unfair method of competition, compel employers to rescind existing non-competes with their workers within 180 days of publication of the final rule, and compel employers to inform affected workers of the rescission. An exception is made for non-competes in connection with the sale of a business sale imposed on the seller of the business.

The proposed rule is now open for public comment here.

image_printPrint

Who We Are

Danielson Legal is a boutique intellectual property and technology law firm in Cambridge, Massachusetts.

We represent international, national and regional companies, both large and small, in a variety of trademark, patent, copyright, licensing, and related areas of practice.

Contact

Cambridge, MA
Office

Danielson Legal LLC

t: (617) 714-9579
f: (888) 742-8097

One Mifflin Place
Suite 400
Cambridge, MA 02138
USA

Contact

Fargo, ND
Office

Danielson Legal LLC

t: (701) 540-5913
f: (888) 742-8097

503 7th ST N
Suite 107
Fargo, ND 58102
USA

Contact

Waltham, MA
Office

Danielson Legal LLC

t: (617) 714-9579
f: (888) 742-8097

375 Totten Pond Road
Suite 102
Waltham, MA 02451
USA

Skip to content