It May Become Illegal to Stop Employees From Taking a Job with a Competitor

Image caption: Mandel Ngan / AFP via Getty Images. Article by Edward Graham, Staff Reporter, Nextgov. Defense One – January 8, 2023.

The Federal Trade Commission on Thursday proposed a rule that would ban companies from requiring their employees to sign noncompete agreements, a prominent practice in the tech industry that prevents departing workers from taking jobs with competitors or starting their own rival businesses for a period of time after they leave their former jobs. The FTC’s sweeping proposal would “generally” prohibit companies from enforcing noncompete clauses in employment contracts […]

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