US federal agency bans employers from using non-compete clauses

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US federal agency bans employers from using non-compete clauses

The US Federal Trade Commission (FTC) announced a rule Tuesday banning employers from using non-compete clauses in worker’s employment contracts. Non-compete clauses are portions of language in employment contracts that restrict an employee from working in a certain sector of business or for certain employers after their contract with their current employer ends. The rule, which was first proposed in January 2023, “provides that it is an unfair …