Comments on Federal Trade Commission Non-compete Ban Proposed Rule, Matter No. P201200

Abstract

Within signed law professors and law students submitted this letter to the Federal Trade Commission, writing in their individual capacities, not as agents of their affiliated institutions, in support of the Federal Trade Commission’s proposed rule to ban most non-compete clauses (the “Proposal”) as an unfair method of competition.

This letter offers comments in response to areas where the FTC has requested public comment. To make our views clear, this letter contains the following sections:
I. Summary of the Proposal;
II. The Commission Should Consider Expanding Its Definition of Non-Compete
Clauses to Prevent Employers from Requiring Workers to Quit Before Seeking
Alternative Employment;
III. Non-Compete Clauses Are Unfair Methods of Competition;
IV. Non-Compete Clauses Negatively Impact Workers and Their Families;
V. The Proposed Rule Protects Small Businesses and Entrepreneurs; and
VI. The Commission Should Consider a Factor Test for Its Unfairness Analysis for
Senior Executives

Our comments were publicly submitted electronically with the FTC on April 18, 2023.

Keywords: Non-competes, Restrictive Covenants, Covenant not to compete