A PYMNTS Company

FTC Extends Comment Period On Its Proposed Rule To Ban Noncompete Clauses

 |  March 7, 2023

The Federal Trade Commission has extended the public comment period for its proposed rule that prohibits employers from enforcing noncompete agreements on their employees. Previously, comments were accepted until March 20, but now the FTC will be accepting them until April 19.

In January of this year, the FTC announced a proposed rule based on their finding that noncompetes are an unfair method of competition, violating Section 5 of the Federal Trade Commission Act.

Related: No, Chevron Deference Will Not Save the FTC’s Noncompete Ban

Information on how to submit comments can be found in the Federal Register notice.

The Commission vote approving the public comment period extension was 4-0, with Commissioner Christine S. Wilson issuing a concurring statement.