Federal Trade Commission Proposes Ban on Non-complete Clauses

On January 19, 2023 the Federal Trade Commission (FTC) issued a proposed rule that if finalized would ban most non-compete clauses used in employment arrangements.

The American Medical Association (AMA) issued the following statement in response to the proposed rule: “The AMA appreciates the Federal Trade Commission’s examination of noncompete agreements in the workplace. While the AMA’s membership has diverse perspectives on noncompetes—with some members in an employer/practice ownership role and some in an employee role—AMA ethics policy opposes unreasonable noncompetes. Many states have enacted negotiated health care–specific noncompete statutes that take into account their unique health care markets and that balance the competing stakeholders’ interests. The balanced approach of these states must be considered against a proposed universal federal ban on all noncompete agreements.”

To read the Proposed Rule see here.