Proposing to Ban Noncompete Agreements, the FTC Plays its Strongest Hand

On January 5, 2023, the Federal Trade Commission (FTC) published a proposed rule that would categorically ban noncompete agreements between employers and a broad class of “workers,” including independent contractors, volunteers, apprentices, and even sole proprietors who provide services to clients. By pushing for markedly extensive change, the FTC has played its strongest hand. Consequently, the federal government should anticipate that an abundance of litigation will be initiated by the corporate sector’s major players, who will fight for middle-ground legislation.