AGs Support Proposed FTC Rule Prohibiting Non-Compete Clauses in Employment Contracts

  • A group of 18 Democratic AGs sent a letter to the FTC in support of the FTC’s proposed Non-Compete Clause Rule that would restrict the use of non-compete provisions in employment contracts.
  • In the letter, the AGs argue that because states differ on whether non-compete clauses are enforceable a uniform federal rule would clarify the law and yield predictable outcomes for workers and employers.
  • The AGs support the FTC’s definitions of “non-compete clause” and “worker,” as well as its proposal not to impose an income threshold on covered workers. The AGs urge the FTC to clarify that the proposed rule does not preempt state laws that provide similar or greater protections and does not preclude the concurrent enforcement of state laws.
  • We have previously covered AGs letters to the FTC in support of the same in March 2020, November 2019, and July 2019.