A “RULE MAKING” CLASS: THE FEDERAL TRADE COMMISSION’S EXPANSIVE PER SE BAN ON NONCOMPETE CLAUSES: AUTHORITY, ENFORCEABILITY, AND THE NEED FOR CONGRESSIONAL ACTION

Authors

Nolan Johnson

Abstract

A non-compete clause is “an agreement or contract not to interfere or compete with a former employer (as by working with a competitor).” The Federal Trade Commission (“FTC”) has proposed a per se ban on non-compete provisions in employment contracts. This would arguably be the FTC’s second substantive rule under the FTC Act. This substantive rule making departs from the traditional common law style rule-making process in which the courts create antitrust jurisprudence standards. In this way, the FTC has challenged the practice by exploring a new avenue of power under Section 5 of the FTC Act.

Recommended Citation

Nolan Johnson, A “RULE MAKING” CLASS: THE FEDERAL TRADE COMMISSION’S EXPANSIVE PER SE BAN ON NONCOMPETE CLAUSES: AUTHORITY, ENFORCEABILITY, AND THE NEED FOR CONGRESSIONAL ACTION, 2024 J. Disp. Resol. (2024)
Available at: https://scholarship.law.missouri.edu/jdr/vol2024/iss1/11