FTC proposes to ban noncompete clauses in employer agreements

The Federal Trade Commission last week released a proposed rule that would ban as an unfair method of competition contractual terms that prohibit workers from pursuing certain employment after their contract with an employer ends. The rule would not apply directly to not-for-profit entities. The agency will accept comments on the proposed rule for 60 days after its publication in the Federal Register. AHA believes that questions regarding noncompete agreements’ enforceability should continue to be left to the states. It plans to comment on the rule and work with the U.S. Chamber of Commerce to challenge the proposal.