{"id":6508,"date":"2023-01-20T09:39:17","date_gmt":"2023-01-20T14:39:17","guid":{"rendered":"https:\/\/employerdefensereport.com\/?p=6508"},"modified":"2026-03-20T11:53:13","modified_gmt":"2026-03-20T15:53:13","slug":"join-cmcs-coalition-to-combat-the-ftcs-ban-of-noncompete-agreements","status":"publish","type":"post","link":"https:\/\/www.connmaciel.com\/employer-defense-report\/join-cmcs-coalition-to-combat-the-ftcs-ban-of-noncompete-agreements\/","title":{"rendered":"Join CMC&#8217;s Coalition to Combat the FTC&#8217;s Ban of Noncompete Agreements"},"content":{"rendered":"<p>Earlier this month, the Federal Trade Commission (FTC) issued a Notice of Proposed Rulemaking for its proposed\u00a0<a href=\"https:\/\/www.ftc.gov\/system\/files\/ftc_gov\/pdf\/p201000noncompetenprm.pdf\" target=\"_blank\" rel=\"noopener\">rule<\/a>\u00a0that would essentially prohibit employers from entering into noncompete agreements with any employee, as well as with independent contractors, interns, volunteers, and other types of workers. <a href=\"https:\/\/www.ftc.gov\/system\/files\/ftc_gov\/pdf\/p201000noncompetenprm.pdf\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" title=\"Capture 2 300x300\" class=\" wp-image-6510 alignright\" src=\"http:\/\/employerdefensereport.connmaciel.stagingarea.org\/wp-content\/uploads\/sites\/2\/2023\/01\/Capture-2-300x300.png\" alt=\"Capture 2 300x300\" width=\"464\" height=\"464\" srcset=\"https:\/\/www.connmaciel.com\/employer-defense-report\/wp-content\/uploads\/sites\/2\/2023\/01\/Capture-2-300x300.png 300w, https:\/\/www.connmaciel.com\/employer-defense-report\/wp-content\/uploads\/sites\/2\/2023\/01\/Capture-2-150x150.png 150w, https:\/\/www.connmaciel.com\/employer-defense-report\/wp-content\/uploads\/sites\/2\/2023\/01\/Capture-2-368x368.png 368w, https:\/\/www.connmaciel.com\/employer-defense-report\/wp-content\/uploads\/sites\/2\/2023\/01\/Capture-2-167x167.png 167w, https:\/\/www.connmaciel.com\/employer-defense-report\/wp-content\/uploads\/sites\/2\/2023\/01\/Capture-2.png 606w\" sizes=\"(max-width: 464px) 100vw, 464px\" \/><\/a>The proposed rule would require employers to withdraw any existing noncompete agreements and inform employees that noncompete agreements no longer apply. The proposed rule would also make it unlawful for an employer to enter into a noncompete agreement with an employee, to attempt to enter into such an agreement with an employee, or to suggest that an employee is bound by a noncompete agreement when the employee is not.<\/p>\n<p>While the FTC may justify this proposed rule as necessary to allow workers to move freely without restrictions, we believe that this rule, if passed, would severely compromise a company\u2019s ability protect its trade secrets and other confidential information, and could negate a company\u2019s significant investment in valuable investments in its employees, including employee training.\u00a0 Indeed, there are countless reasons why a narrowly tailored noncompete agreement is a necessary tool that has been, and should continue to be, in an employer\u2019s arsenal to protect its significant investment in its employees and the information to which they are privy.<\/p>\n<p>The rule is currently open for comment.\u00a0 To that end,\u00a0<em><strong>Conn Maciel Carey LLP is organizing a new fee-based coalition of employers and trade groups to<\/strong>\u00a0<strong>advocate for the most reasonable FTC rule possible<\/strong><\/em><strong>,\u00a0<\/strong>with the goal of helping to shape any rule that the FTC ultimately promulgates in such a way that the rule is palatable to employers.\u00a0We would be honored to partner with your organization in this endeavor. <!--more--><strong><em>Accordingly, if your organization is interested in participating this coalition, please <\/em><\/strong><strong><em><a href=\"mailto:kmaciel@connmaciel.com\" target=\"_blank\" rel=\"noopener\">let me know<\/a><\/em><\/strong><strong><em>\u00a0as soon as you are able.<\/em><\/strong>\u00a0 Once we gain an understanding of the industries represented by the coalition, we will develop a refined plan for how to address different industries\u2019 interests in our comments, and also will be in a position to determine the exact fee structure for participation.<\/p>\n<p><strong><em>We intend to organize a meeting during the final week in January \u2013\u00a0on January 30, 2023<\/em><\/strong><em>.<\/em>\u00a0 During that organizing call, we will discuss the FTC\u2019s plans for this rulemaking and the statements it has made in support of the proposed rule.\u00a0 We also will brainstorm about the development of a set of comments in response to the proposed rule.\u00a0 \u00a0The public comment period is scheduled to close on March 10, 2023. Commissioner Christine Wilson, who dissented from issuing the proposed rule, urged parties to submit comments.\u00a0 Thus, we believe that these comments could be extremely helpful in forming the basis for substantive change.\u00a0 Thereafter, once the public comment period closes, the agency will review the comments and issue a final rule that will hopefully incorporate our comments.<\/p>\n<p>Happy New Year.<\/p>\n<p>Kara and CMC\u2019s National\u00a0<a href=\"http:\/\/www.connmaciel.com\/labor-and-employment\" target=\"_blank\" rel=\"noopener\">Labor &amp; Employment Practice Group<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Earlier this month, the Federal Trade Commission (FTC) issued a Notice of Proposed Rulemaking for its proposed\u00a0rule\u00a0that would essentially prohibit employers from entering into noncompete agreements with any employee, as well as with independent contractors, interns, volunteers,&hellip;<\/p>\n","protected":false},"author":21,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[818],"tags":[850],"class_list":["post-6508","post","type-post","status-publish","format-standard","hentry","category-regulatory-government-oversight","tag-trade-secrets-non-competes"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - 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